Riksbank maintains its rate unchanged at 0.00% as expected; Riksbank maintains asset purchase envelope of SEK 700bln; Repo path maintained at 0.00% for the entirety of forecast horizon

The Swedish economy has recovered quickly and inflation is expected to become temporarily higher than 2% in the coming year, before falling back again
Rising global demand and transport problems have led to consumer prices increasing at a fast pace in several areas. However, the price upturns are assessed to be largely temporary. When growth enters a calmer phase, the bottlenecks are expected to resolve and inflation to slow down.
The Riksbank will also continue to purchase securities during the fourth quarter, in line with the earlier decisions. The Executive Board’s forecast is that the holdings of securities will be more or less unchanged during 2022.
The Executive Board may cut the repo rate or in some other way make monetary policy more expansionary if inflation prospects weaken. This applies in particular if confidence in the inflation target were to be under threat. A less expansionary monetary policy might be justified if inflation were to risk overshooting the target significantly and persistently.