Riksbank hikes its Rate by 100bps to 1.75% (exp. 75bps hike to 1.50%); Forecast indicates rate will be raised further in the coming six months

INFLATION

• Inflation is too high. It is undermining households’ purchasing power and making it more difficult for both companies and households to plan their finances. Monetary policy now needs to be tightened further to bring inflation back to the target.

ASSET PURCHASES 

• The Riksbank's asset purchases will continue in accordance with the decision in June but are expected to cease at the end of the year. The asset holdings will thus gradually decrease through maturities and halve during the forecast period.

POLICY

• By raising the policy rate more now, the risk of high inflation in the longer term is reduced, and thereby the need for greater monetary policy tightening further ahead.

Via Riksbank