Monetary Policy Report, July 2019

Economic activity in Sweden remains strong and inflation is close to the target of 2 per cent. Uncertainty abroad has increased but new information since the monetary policy decision in April has not led to any major revisions of the forecasts overall. With continued support from monetary policy, the conditions for inflation to remain close to the target in the period ahead are considered good. The Executive Board has decided to hold the repo rate unchanged at –0.25 per cent. The forecast for the repo rate is also unchanged and indicates that it will be increased again towards the end of the year or at the beginning of next year. However, the risks surrounding developments abroad can have a bearing on the prospects for Sweden, which emphasises the importance of proceeding cautiously with monetary policy.

Updated 01/08/2019