Monetary Policy Report, September 2019

After several years of high growth, the Swedish economy, similar to economies abroad, has entered a calmer phase. Since the beginning of 2017, inflation has been close to the target of 2 per cent. Even though economic activity has slowed down a little faster than expected, resource utilisation continues to be higher than normal and is helping inflation stay close to the target. The Executive Board has decided to hold the repo rate unchanged at −0.25 per cent. As before, the interest rate is expected to be raised towards the end of the year or at the beginning of next year. However, low interest rates abroad and worsened sentiment mean that the interest rate is expected to be increased at a slower pace thereafter than in the previous forecast.