Monetary policy instruments

The Riksbank regularly uses market operations in the form of Riksbank Certificates or repos as well as daily fine-tuning transactions.

Riksbank Certificates during surplus in banking system

Once a week, normally on Tuesdays, the Riksbank issues Riksbank Certificates at an interest rate that is the same as the repo rate. By issuing Riksbank Certificates, the Riksbank withdraws liquidity from the banking system, which currently has a surplus.

Repos during a deficit in the banking system

If the banking system has a liquidity deficit in relation to the Riksbank, the Riksbank provides for this by carrying out repo transactions once a week. A repo transaction means that the Riksbank buys securities from the banks at the repo rate, which are then sold back one week later.

Fine-tuning transactions

If the banking system does not have a balance in its liquidity in relation to the Riksbank at the end of the day, the Riksbank is prepared on a daily basis to carry out what are known as fine-tuning transactions with the banks. In these fine-tuning transactions the Riksbank draws in the remaining surplus liquidity from the banks, that is they deposit money with the Riksbank, at present at the repo rate minus 0.1 percentage points. If the banking system were to have a liquidity deficit at the end of the day, the Riksbank lends money at the repo rate plus 0.1 percentage points.

The counterparties in these transactions are the Riksbank's monetary policy and primary monetary policy counterparties.

Standing deposit and lending facilities

RIX participants that are credit institutions domiciled or with a branch in Sweden and which are monetary policy counterparties have access to the standing deposit and lending facilities.

The standing deposit facility means that the counterparty may have a positive balance on its account in RIX at the end of the day. The counterparty then receives interest calculated as the repo rate minus 0.75 percentage points. If this entails a negative interest rate, the counterparty pays interest to the Riksbank.

The standing lending facility means that the counterparty may have a negative balance on its account in RIX at the end of the day. The counterparty then pays interest calculated as the repo rate plus 0.75 percentage points.

Other instruments

In addition to the instruments mentioned above, the Riksbank can also use other instruments when implementing monetary policy. One such instrument is the purchase (and sale) of securities.

Purchases of government bonds

Conditions for Monetary Policy Instruments

Rules and Regulations for RIX and Monetary Policy Instruments are gathered under Conditions and instructions.

There are special conditions applying to some monetary policy instruments normally used by the Riksbank. There are special conditions applying to Riksbank Certificates.

There are also special conditions for the Riksbank's purchases of government securities.

Updated 11/01/2018