Majority view reflected in the Monetary Policy Report
Economists from APP continue their work after the meeting of the monetary policy group by following up any requests from the Executive Board and producing a proposal for forecasts and monetary policy which it is judged will gain majority support from the Executive Board. At the same time, texts are prepared which are compiled into a first draft of the Monetary Policy Report. Scarcely one week after the monetary policy group meetings, the draft report is presented at a Board meeting where the Executive Board discusses how the forecasts and monetary policy are to be reported. The draft Monetary Policy Report is tabled and the editorial work continues after the meeting. The text is only finally adjusted in connection with the monetary policy meeting, since it is only then and there that the forecasts and monetary policy are determined.
The Monetary Policy Report describes the Executive Board's view of economic and inflation prospects and the considerations on which the monetary policy decision is based. The Executive Board of the Riksbank consists of members with different backgrounds, experiences and knowledge so that decisions on monetary policy are based on several different perspectives on economic developments. This also means that there may be different views on what is the most appropriate monetary policy decision at the time. Sometimes it is only a matter of nuances, but other times there is greater variation within the Executive Board in its view of, for example, how inflation and the real economy will develop or on the risk outlook for monetary policy. Even if there is agreement on the economic outlook and forecasts, there may still be different views on what is a well-balanced monetary policy. In cases where opinions of Executive Board members differ, it is the majority view that is expressed in the decision and in the Monetary Policy Report.
The purpose of the report is to summarise the background material for the monetary policy decisions, and to spread knowledge about the Riksbank’s assessments. By publishing the reports, the Riksbank aims to make it easier for external parties to follow, understand and assess its monetary policy. Since 2007, the Riksbank has published a forecast for the repo rate to communicate what it considers to be a well-balanced monetary policy during the forecast period. As other measures in addition to the repo rate have become important, these have also been communicated to a greater extent in the report. When the Executive Board has decided to use monetary policy tools other than the policy rate, such as asset purchases and various types of credit facilities, special annexes to the minutes are published, describing the details and considerations regarding these decisions.