Monetary Policy Report, February 2022
Central bank: riksbank | Type: statement | Date: 2022-02-10

Monetary Policy Report, February 2022
As energy prices have increased rapidly, inflation is now high but the Riksbank expects it to fall back over the year. Monetary policy needs to provide continued support for inflation to be close to the target in the medium term. The Executive Board has therefore decided to hold the repo rate at zero per cent and that the Riksbank shall purchase bonds for SEK 37 billion during the second quarter of 2022 to compensate for maturing assets in the portfolio. The Executive Board’s forecast is, as before, that the holdings will remain approximately unchanged in 2022 and then decrease gradually. The forecast for the repo rate indicates that it will be raised in the second half of 2024, which is slightly earlier than the Riksbank’s assessment in November.
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Applies from 16 February 2022
Repo rate, table
In brief - Monetary policy February 2022
The sharp fall in GDP abroad during the beginning of the pandemic has largely been recovered. Following the rapid upturn, the growth rate slowed down, although global growth prospects remain bright. An increasing number of countries now assess that COVID-19 is not a danger to society and are removing the remaining restrictions. Not least, conditions are good for household consumption to develop strongly.
In most parts of the world, inflation has risen rapidly over the past year. One common feature is that a large part of the upturn can be explained by rapidly rising energy prices. However, adjusted for energy prices, there are major differences between countries. For instance, in the United States and the United Kingdom, underlying inflation has risen to relatively high levels.
In Sweden, the high inflation is entirely explained by rapid in-creases in electricity and fuel prices. Inflation adjusted for energy prices is close to 2 per cent. The Riksbank does not expect energy prices to continue to rise this year. This means that inflation will fall back. Although it is uncertain how lasting the high rate of inflation will be, in the forecast inflation is expected to be close to 2 per cent from the middle of next year. Compared with November, the assessment has been revised upwards.
Monetary policy needs to provide continued support for inflation to be close to target in the medium term. The Executive Board has therefore decided to keep the repo rate at zero per cent and that the Riksbank shall purchase bonds for SEK 37 billion in the second quarter of 2022 to compensate for maturing assets. The Executive Board’s forecast is, as before, that the holdings will remain approximately unchanged in 2022 and then decrease gradually. The forecast for the repo rate indicates that it will be raised in the second half of 2024, which is slightly earlier than in the assessment in November.
Press release 10 February 2022: Monetary policy decision: Zero interest rate and unchanged asset holdings
(pdf | 524,3 kB)
Monetary Policy Report February 2022
(pdf | 6,1 MB)
Decision by the Executive Board, Annex B to the minutes: The Riksbank’s purchases of securities during the second quarter of 2022 (9 February 2022)
(pdf | 523,4 kB)
Numerical data: Monetary Policy Report February 2022
(xlsx | 2,1 MB)
Article: High energy prices – how will other consumer prices be affected? Article in Monetary Policy Report February 2022
(pdf | 1,2 MB)
Economic Commentary: Long-term unemployment in the wake of the pandemic
(pdf | 1 MB)
Slides from the press conference 10 February 2022
(pdf | 2,2 MB)
Related content
Repo rate, deposit and lending rate
The Riksbank’s purchases of securities
The Riksbank’s measures in connection with the corona pandemic
Voting by the Executive Board on interest rate decision
Monetary policy minutes, February 2022
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Updated 15/02/2022