the Reasoning was that the Riksbank’s räntemöte in december, there is a dispute riksbanksledning raised the repo rate by 0.25 percentage points to zero, and put an end to the nearly five-year minusränta.
In connection with the minimum bid rate was forecast by the executive board, which indicates that it will take at least until the end of 2021 at the latest, before the rate can be increased again.
”the Scope for interest rate cuts, and the statsobligationsköp is not the same as in the past, and if the development would be significantly lower than in our main scenario is needed, most likely for a different policy mix in Sweden,” said Stefan Ingves, according to a summary of the meetings.
”In such a scenario, we do not see that it is most likely, the need for more innovative approaches in order to get out of the purchasing power of households and enterprises. In this scenario there is a rapid expansion of the balance sheet is closer to the hand than a minusränta,” he added.
and by its large holding of government bonds, providing the opportunity to act quickly to raise or lower köptakten.
”We have, in other words, it is a good starting point, if we need to change the composition and direction.”
the Deputy governor Martin Flodén did not hesitate in taking the decision to raise the interest rate. He did, however, vote with the majority, with the note though, he saw it as a possible measure to reduce, to the minusränta again. However, in the vote, there were only two of the six members of the executive board, which entered a reservation against the interest rate increase.
”on average, are expected to lead to CPIF inflation is now projected at 1.7 per cent in both 2020 and 2021. With that outlook, I find it hard to see that there is an urgent need for a higher rate,” said deputy governor Per Jansson.
also, look to low inflation expectations as a motivation to push forward all the time.
The newly-appointed vice-governor Anna Breman entered a reservation against the decision.
”the Risks associated with raising the repo rate at the present time are greater than the disadvantages resulting to wait for a few more months until we see a stabilization in the economy,” she said at the meeting.
She sees a risk that a central bank with the mark-up, which now was made to limit the scope to slowly get up, interest rates in the coming years.
for more information, see Ingves is a member, held the apology.
