Monetary Policy Report, July 2020

To avoid an unnecessarily prolonged and deep decline in the economy and inflation, the Executive Board has decided on several measures. The framework for the asset purchases made by the Riksbank since the crisis began is being extended from SEK 300 billion to SEK 500 billion up to the end of June 2021. In September, the Riksbank will also begin purchasing corporate bonds. The Executive Board has further decided to cut interest rates and extend maturities on lending to banks. At the same time, the repo rate is held unchanged at zero per cent. The measures are helping to keep down general interest rates in the economy and to maintain access to low-cost funding. In this way, the Riksbank is providing support to the recovery in the economy and inflation.