–Sees Repo Rate At 1.1% By 1Q 2011, 2.8% By 1Q 2012
BRUSSELS (MNI) – Sweden’s central bank Tuesday left its key policy
rate on hold at 0.25%, along with its repo rate forecast, but it revised
down its forecasts for growth and inflation this year.
“The repo rate needs to remain at a low level to support production
and employment and to attain the inflation target,” the Riksbank said in
a statement on its web site.
“Increases in the repo rate towards a more normal level will begin
in the summer or early autumn. The forecast for the repo rate is
therefore the same as in February,” it said.
The repo rate path, which the central bank left unchanged – sees
the key repo rate at 0.25% in 2Q this year, before rising to 1.1% by 1Q
2011, to 2.8% by 1Q 2012 and to 4.0% by 1Q 2013.
The Riksbank’s governor, Stefan Ingves, couldn’t attend the
monetary policy meeting because his travel plans were interrupted by the
volcanic eruption in Iceland, which has shut many airports across
Europe.
The Governor’s views on Sweden’s economic situation will be
published on May 3, along with the minutes of Tuesday’s meeting, the
Riksbank said.
–Brussels bureau: 0032 487 (0) 32 803 665, echarlton@marketnews.com
[TOPICS: MT$$$$,M$$FX$,M$$EC$,M$X$$$,M$$CR$]
