Monetary policy report, July 2018

Economic activity is strong and inflation is close to the target of 2 per cent. As earlier, however, inflationary pressures are moderate. Monetary policy needs to continue to be expansionary for inflation to remain close to target. The Executive Board has therefore decided to hold the repo rate unchanged at −0.50 per cent. The forecast for the repo rate is also unchanged and indicates as before that slow repo rate rises will be initiated towards the end of the year.