Riksbank leaves it Repo Rate unchanged at 0.00% as expected, Riksbank expands and extends asset purchases to SEK 700bln from SEK 500bln up to 31 December 2021 (Prev. H1-2021); Bremen and Floden dissented on the asset purchase decision
Important
SourceNewsquawk
SectionOther Central Banks
- Increases pace of asset purchases during Q1 2021 vs Q4 2020
- Breman advocated that the programme should instead be expanded by SEK 100 billion during the second half of 2021; Flodén thought that the Riksbank should pledge that monetary policy will remain expansionary as long as necessary without deciding now on purchase sums for the second half of 2021.
- The programme now also includes treasury bills, and sovereign and municipal green bonds to ensure the broadest possible impact on rate-setting; the Riksbank will only offer to buy corporate bonds issued by companies deemed to comply with international standards and norms for sustainability.
- CPIF inflation is not likely to lastingly attain 2 per cent until 2023; reiteration from September's meeting
