The path to a monetary policy decision

A structured but flexible process

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A structured but flexible process

The monetary policy meeting

Published: 7 April 2022

Since 2020 the Executive Board has held five scheduled monetary policy meetings a year.[20] The number of monetary policy meetings per year has varied over time. Between 2008 and 2020, six monetary policy meetings were normally held per year. In June 2019, the Executive Board decided to change over to five meetings. See Sveriges Riksbank (2019). However, if more monetary policy decisions are needed, the Executive Board may meet more frequently. The initial acute phase of the coronavirus crisis is a clear example of this. Between 12 March and 21 April 2020, five extraordinary monetary policy meetings were held to decide on various measures.[21] The Executive Board also made six per capsulam decisions during this period. During 2020, decisions were taken on more than 20 occasions. In addition to the Executive Board, the monetary policy meetings normally involve a total of around 20 people from APP, AFS, AFM, the Communications Secretariat (COM), the Head of the General Secretariat and the Chief Legal Counsellor. The Chair and Deputy Chair of the General Council also participate regularly in the Board meetings and thus gain insight into the work of the Executive Board. They both have the right to express opinions, but not to put forward proposals or take part in any decisions.

The meeting starts with a brief update of market developments since the previous monetary policy meeting. The Head of APP then reports the forecast that the department judges will be supported by a majority of the Executive Board, and the proposal for monetary policy on which it is based. APP also describes the issues that have been discussed in particular detail during the drafting process. Each member of the Executive Board now presents his or her view of the current status of the economy and of how monetary policy should best be formulated, sometimes followed by a discussion between the members. During the course of the drafting process, the members have formed their own opinion, but it is at this meeting that the final decision on the repo rate and other monetary policy measures is taken and a majority view is formulated regarding future monetary policy and economic developments. An assessment is made of the path for the repo rate over the current forecast period, and there is discussion of other aspects regarding which monetary policy is appropriate during the forecast period. The Executive Board decides on the monetary policy report at the meeting, but the process is designed so that the forecasts and the wording of the report can be adjusted after the meeting if necessary to accurately reflect the reasoning at the meeting. After the formal meeting, the press release on the decision is adopted.