Monetary policy report, February 2018

Economic activity in Sweden is strong and inflation is close to the target of 2 per cent. But the forecast for inflation in the coming year has been revised down slightly. Monetary policy needs to remain expansionary for inflation to stabilise close to the target going forward. The Executive Board of the Riksbank has therefore decided to hold the repo rate unchanged at −0.50 per cent. The forecast for the repo rate is unchanged since December and indicates that slow repo rate rises are set to be initiated during the second half of this year.