Executive Board at hearing of Committee on Finance regarding Account of Monetary Policy 2020
News, Speeches 2020 was an unusual year in many respects. This also includes the Riksbank’s monetary policy. Normally, the Executive Board takes monetary policy decisions five times a year. During 2020, decisions were taken on more than 21 different occasions. The Riksdag Committee on Finance’s hearing on monetary policy on Tuesday will be attended by all of the members of the Executive Board, who will answer questions.
The coronavirus pandemic caused economic activity to fall heavily in spring 2020, and uncertainty on the global financial markets soared. Many households and companies were hit hard when countries around the world introduced extensive restrictions to reduce the spread of infection. The conditions for attaining the inflation target were radically altered.
“Under these kinds of circumstances it is essential for central banks to act quickly, powerfully and with a broad spectrum of measures to support the economy in the best way possible over a sufficiently long period of time,” said Mr Ingves in his introduction at the hearing. “The measures taken by central banks and governments around the world contributed to preventing an even deeper global crisis than the one we have experienced. The financial markets have stabilised and we avoided a financial crisis with an even more drastic economic downturn and lower inflation,” said Mr Ingves.
Hilde C Bjørnland and Göran Hjelm presented views on the Account of Monetary Policy and the shaping of monetary policy. After this, Deputy Governor Martin Flodén commented on the opponents’ points of view before the Committee asked questions.