Minutes of the Monetary Policy Meeting held on 20 September 2023

Press release, Minutes For inflation to fall back and stabilise around the target of 2 per cent within a reasonable time, the Executive Board decided at their monetary policy meeting on 20 September to raise the policy rate by 0.25 percentage points to 4 per cent. The forecast for the policy rate shows that it may be raised further.

The members noted that although inflation is on the way down, in line with the Riksbank’s assessment in June, inflationary pressures are still too high. The fall in inflation is largely due to a sharp decline in energy prices since last year. Excluding energy prices, annualised inflation is falling back more slowly. Also, when measured over shorter periods, such as month to month or quarter to quarter, prices are increasing at a rate that is not compatible with the inflation target.

The members emphasised the risks associated with the continued high underlying inflation and the weak krona. To ensure that inflation continues to fall and stabilise around the inflation target within a reasonable time, the Executive Board considered it appropriate to tighten monetary policy somewhat further and raise the policy rate from 3.75 to 4 per cent.

The Executive Board also assessed that the policy rate may need to be increased further. New information and how it is expected to affect the economic outlook and inflation prospects will be decisive in determining the monetary policy stance, but the members pointed out that monetary policy will need to be contractionary for a significant time going forward.

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Updated 02/10/2023