Minutes of the Executive Board’s monetary policy meeting on 14 February 2011
At the monetary policy meeting held on 14 February, the Executive Board of the Riksbank decided to raise the repo rate by 0.25 percentage points to 1.5 per cent and to continue raising the repo rate at a somewhat faster rate in the period ahead compared with the assessment in December. The assessment of the Executive Board was that there is a need to raise the repo rate in order to stabilise inflation at a level close to the target of 2 per cent and to avoid too high a level of resource utilisation in the future. A gradual rise in the repo rate also reduces the risk of imbalances building up in the Swedish economy, and may contribute to a slower growth in household borrowing.
The decision was made against the background of the monetary policy discussion. The conclusions of the discussion were that the Swedish economy remains strong, although the rate of growth has slowed down somewhat compared with the very strong growth during the third quarter of last year, and that the positive development of the labour market is continuing. Unemployment has fallen slightly faster than was expected at the monetary policy meeting in December and inflation has increased somewhat as a result of higher energy and commodity prices. Growth in the world economy as a whole is good, and prospects in the United States look somewhat brighter. Developments in Europe are still uncertain, however, as a result of the problems with public finances in several European countries.
Deputy Governor Karolina Ekholm and Deputy Governor Lars E.O. Svensson entered a reservation against the decision to raise the repo rate by 0.25 percentage points to 1.5 per cent and against the forecast repo rate (the repo rate path) in the Monetary Policy Report.
You can read the full minutes of the monetary policy meeting held on 14 December in the attached PDF file.
