Sweden: Riksbank maintains repo rate at 1.50%
July 4, 2012
At its 4 July monetary policy meeting, the Central Bank (Riksbank) left its repo rate unchanged at 1.50%, in a decision that was expected by market analysts. The Central Bank's decision aims at supporting economic growth amid a low-inflation environment. Riksbank stated that the Swedish economy is expected to grow at a subdued pace going forward. The Central Bank praised the strong performance of domestic demand but warned that export growth may remain lacklustre for some time as a result of lower demand from the crisis-ridden Euro area. Regarding price developments, Riksbank acknowledged that "inflation is low at present, which is mainly due to cost pressures being low and the krona having strengthened after the financial crisis 2008-2009". Indeed, the Bank expects inflation to remain below its target of 2.0% in both 2012 and 2013.