The Riksbank’s repo rate will change its name to the Riksbank’s policy rate
News New name – same function and purpose. This is the main message when the Riksbank’s repo rate is now being renamed the Riksbank’s policy rate.
The reason for the change is primarily that the old name, “repo rate”, has become misleading. This name refers to a specific instrument, monetary policy repos, which the Riksbank has not used since 2008.
With the change of name to the Riksbank’s policy rate, the interest rate will have a more appropriate name. The function and purpose of the interest rate, to steer the overnight rate and to influence other interest rates in the economy in order to achieve the inflation target, remains unchanged.
The change of name applies from today, Wednesday, 8 June 2022.
In connection with this, the two changes are also being implemented to the Riksbank’s monetary policy operational framework, as decided by the Executive Board on 22 March 2022. These changes mean that collateral requirements for loans in the Riksbank’s standing lending facility are being tightened and that a supplementary liquidity facility is being set up.
Read more about these changes via the link to the press release on 22 March 2022 below.