12 May 2015
Riksbank minutes envisage further easing
FXStreet (Edinburgh) - The Riksbank has released the minutes of the last monetary policy meeting held on April 28th. The Nordic central bank made it clear that its main target remains the evolution of inflation figures.
The Riksbank acknowledged that the domestic economic recovery remains on track, helped by the positive effects of the current conditions in the monetary policy.
Domestic consumer prices have started to tick higher backed by a softer krona, although development overseas and a change in the krona’s trend pose the most immediate risks to the uptrend in the CPI, which is expected to reach the 2.0% target at the turn of the year 2015-2016.
Furthermore, the central bank’s board unanimously voted to extend the current bond-buying programme by SEK 40-50 billion from May to September and left intact the repo rate at -0.25%, although it revised lower the rate path. In addition, the Riksbank left the door open for further easing in case of need, via inter-meeting rate cuts, FX intervention, an increase of the bond purchases or by starting to lend money to companies via the banks.
The board admitted concerns regarding the housing sector and household indebtedness, stating that it will remain vigilant on these factors.
The krona depreciated to the proximity of 9.3400 vs. the euro in the wake of the release, although well within the recent range. The TNS Sifo Prospera Inflation Expectations are the next risk event in the Swedish docket, due tomorrow.
The Riksbank acknowledged that the domestic economic recovery remains on track, helped by the positive effects of the current conditions in the monetary policy.
Domestic consumer prices have started to tick higher backed by a softer krona, although development overseas and a change in the krona’s trend pose the most immediate risks to the uptrend in the CPI, which is expected to reach the 2.0% target at the turn of the year 2015-2016.
Furthermore, the central bank’s board unanimously voted to extend the current bond-buying programme by SEK 40-50 billion from May to September and left intact the repo rate at -0.25%, although it revised lower the rate path. In addition, the Riksbank left the door open for further easing in case of need, via inter-meeting rate cuts, FX intervention, an increase of the bond purchases or by starting to lend money to companies via the banks.
The board admitted concerns regarding the housing sector and household indebtedness, stating that it will remain vigilant on these factors.
The krona depreciated to the proximity of 9.3400 vs. the euro in the wake of the release, although well within the recent range. The TNS Sifo Prospera Inflation Expectations are the next risk event in the Swedish docket, due tomorrow.