Repo rate lowered 0.2 percentage points to 3.40%

The Governor of the Riksbank has decided, in accordance with monetary policy guidelines that have been confirmed with the Governing Board, to lower the repo rate 0.20 percentage points, from 3.60 to 3.40 per cent. The decision will be effective from Wednesday, 16th December 1998.

The interest rate cut is to be seen in the light of the analysis that was presented in the latest Inflation Report, where it was concluded that there could be a little room for adjusting the monetary stance in a more expansionary direction.

With this interest rate cut, monetary policy is judged to be well balanced. The new Executive Board of the Riksbank is to take up office at the turn of 1999 and will then be responsible for monetary policy decisions.

A press conference with Mr. Urban Bäckström, Governor of the Riksbank, and Lars Heikensten, Deputy Governor, will be held today at 11 a.m. at the Riksbank. Admission by press card at No. 7 Malmskillnadsgatan.