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Riksbank hikes its Rate by 25bps in an unexpected move to 0.25% (exp. 0.00%); Repo Forecast: will be raised further two to three times this year (prev. indicates that it will be raised in the second half of 2024)

Important
SourceNewsquawk
SectionOther Central Banks
  • Repo Forecast: The forecast is that the repo rate will be raised a further two to three times this year and will be somewhat below 2 per cent at the end of the three-year forecast period (prev. indicates that it will be raised in the second half of 2024)
  • QE: decided to reduce the pace of these purchases during the second half of the 2022, so that the holdings begin to decline; the Riksbank will buy bonds for SEK 37 billion during the second half of the year. (prev. SEK 37bln for Q2; expected to be broadly unchanged for the year, before gradually decreasing)
  • Inflation: Inflation has risen to the highest level since the 1990s and will be high for some time. . (prev. even if the risk of too low inflation is assessed to have declined, it still remains.)

Via Riksbank

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