Monetary policy report, April 2018

Economic activity in Sweden is still strong and inflation has been close to the target for the past year. However, underlying inflation has been somewhat lower than expected recently, which raises questions regarding the strength of the development in inflation. If inflation is to remain close to the target going forward, continued support is needed from monetary policy. The Executive Board has therefore decided to hold the repo rate unchanged at −0.50 per cent and assesses that the rate will begin to be raised towards the end of the year, which is somewhat later than previously forecast.