STOCKHOLM, 10 February (Xinhua) – The Central Bank of Sweden announced on Wednesday that it will keep its policy rate at zero and expects the repo rate to remain at this level until the first quarter of 2024.
The Riksbank will also continue to buy assets within the envelope of SEK 700 billion (USD 83.5 billion), as it sees extensive monetary policy support as necessary to mitigate the consequences of the COVID-19 pandemic and help inflation rise to 2- percentage goal.
“In Sweden, as in other countries, several service industries are still under severe pressure because households have not consumed as normal during the crisis. Overall, however, the economy has been more resilient to the second wave of the pandemic than to the first,” the Riksbank said in a press release. .
“As soon as the spread of infection decreases and restrictions are lifted, households are expected to return to more normal consumption patterns, which will create favorable conditions for increased demand. “
Depending on how the vaccination program against COVID-19 will affect consumption patterns, the Riksbank said that it is also prepared to lower the repo rate below zero. The last time such a situation occurred in Sweden was between the beginning of 2015 and the end of 2019.
Source: sn.dk