Monetary Policy Report, July 2017

Economic activity is strong and inflation is approaching 2 per cent. The Riksbank’s monetary policy has contributed to this. But it has taken time to bring up inflation and a continued expansionary monetary policy is required for it to stabilise around 2 per cent. The Executive Board of the Riksbank has decided to hold the repo rate unchanged at −0.50 per cent. The first rate increase is not expected to be made until the middle of 2018, which is the same assessment as in April. The purchases of government bonds will continue during the second half of 2017, as decided in April.