Minutes of the Monetary Policy Meeting held on 22 November 2023

Press release, Minutes Monetary policy has reduced demand in the Swedish economy and contributed to an easing of inflationary pressures. The Executive Board assesses that monetary policy needs to remain contractionary, however, it is now appropriate to leave the policy rate unchanged. At its monetary policy meeting on 22 November, the Executive Board decided to keep the policy rate at 4 per cent. The Executive Board is prepared to increase the policy rate further if the outlook for inflation deteriorates.

The board members noted that economic developments since the meeting in September have largely been in line with the Riksbank’s forecasts. Inflation remains too high but is falling. The policy rate increases have reduced demand in the Swedish economy and are helping to ease inflationary pressures. The labour market is slowing down from a strong initial position. Forward-looking indicators, such as companies’ price plans, also point to inflation continuing to fall.

The members stressed that, as before, there are risks that may prevent inflation from continuing to fall towards the target. Services prices are still increasing at a rapid pace and although the krona has appreciated since September, it is still assessed to be unjustifiably weak.

The Executive Board emphasised their preparedness to raise the policy rate further if the outlook for inflation deteriorates, which is also reflected in the forecast for the policy rate. The board members underlined that monetary policy needs to remain contractionary for inflation to not only fall but also stabilise at the target. New information and how it is expected to affect the outlook for the economy and inflation will be decisive in determining the monetary policy stance.

The Board members also think there is reason to consider expanding the government bond sales at the next monetary policy meeting. Next year, eight monetary policy meetings are planned and this will make it easier for the Executive Board to make new assessments of monetary policy more frequently.

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Updated 04/12/2023