The Riksbank's financial results and capital are affected by higher interest rates
Economic Commentaries, News During the coronavirus pandemic, the Riksbank decided, among other things, to buy securities in Swedish kronor for large amounts, which helped to keep general interest rates low. This meant that the Riksbank took over some of the financial risks that the private sector did not want to, or could not, take because of the prevailing uncertainty. The Riksbank's assessment is that the asset purchases have supported the Swedish economy and have counteracted the negative effects that arose in the wake of the pandemic.
The recent rapid rise in market interest rates has led to a substantial decline in the value of the Riksbank's asset holdings. The Riksbank can be expected to report a large loss this year, which in turn will lead to a sharp reduction in equity. However, it is important to take into account the broad and positive effects of the asset purchases on the Swedish economy. This is described in a new Economic Commentary by David Kjellberg and Magnus Åhl at the Riksbank's Markets Department.
Read the entire Economic Commentary: The Riksbank's financial results and capital are affected by higher interest rates
Read Economic Commentaries in a new format
This Economic Commentary is published in a new format, as a web report directly on our website, to make it easier to read the report digitally. The report's homepage also has a pdf version available for those who want to download and save or print it.