##o rate now and in the coming period. i have noted that the fact that i have advocated increasing the repo rate has meant that anyone who now reads some reports in the media about the activities of the executive board may gain the impression that i am an inveterate “ hawk ”, perhaps even some form of iron lady who is ready to quash any tendency towards an economic upturn. to modulate this picture, i would like to point out that immediately prior to the crisis, in summer and autumn 2008, i actually entered reservations against what i considered to be the excessively tight policy advocated by the majority of my colleagues. so the idea of putting executive board members into compartments, or perhaps rather cages, and expecting us to stay there, is not usually wise, at least not with regard to me. i recall, by the way, that i said roughly the same thing two years ago, when i was regarded as being a dove. it may also be worth noting that i am not the only one who from time to time prefers a higher or lower repo rate path than the published one. the same applies to market expectations regarding the future repo rate. for instance, during most of 2009 market expectations were largely above the riksbank ’ s repo rate forecast. since the beginning of 2010 they have instead been below our path. in this context it is important to point out that there is no “ true ” measure of market expectations of monetary policy. the expectations i am talking about here are the expectations of the repo rate that can be read from forward rates. to produce these expectations, one must among other things adjust for various types of premium in the forward rates, and there is no obvious way of doing this. so one should remember that discrepancies between the riksbank ’ s repo rate forecast and market expectations as understood from forward rates could be due at least in part to measuring problems. regardless of these difficulties, it is also worth emphasising that there are no particularly strong reasons to believe that the market is always “ right ”, in the sense that the repo rate the market is expecting is the one that will be realised. if one looks at historical patterns, the actual repo rate has often shown a rather different development to what market agents were expecting, according to forward rates ( see figure 1 ). the fact that market expectations are now below the riksbank ’ s forecast for the repo rate is of course worth analysis and consideration

. given this, we adjusted up our assessment of resource utilisation in the economy in relation to that made at the monetary policy meeting in june. we foresaw resource utilisation continuing to rise over the coming years. the overall picture was that resource utilisation was still at a low level, but that it would be at an approximately normal level at the end of the forecast period. we estimated in our forecast in september that underlying inflation measured as the cpif would continue to fall in 2010, and then increase as rising resource utilisation made an impact on inflation. it would reach 2 per cent at the beginning of 2013. cpi inflation was forecast to increase quickly next year, mainly as a result of mortgage rates rising due to the repo rate increases. cpi inflation was expected to temporarily overshoot the inflation target in 2012 and 2013, but to be around the 2 per cent target in the longer run when the repo rate has reached more normal levels. the majority of the executive board members made the assessment that it was appropriate to continue the process of normalizing monetary policy that had begun in the summer. the repo rate was raised to 0. 75 per cent and the repo rate path was held unchanged from june. this is roughly the picture we painted in the monetary policy update published in september. the statistics received recently have continued to point towards a rapid recovery in sweden. the gdp outcome for the second quarter has been revised up relatively substantially compared with the preliminary outcome, and expressed as an annual percentage change amounts to 4. 6 per cent. the national institute of economic research ’ s economic tendency survey points to the mood among households and companies being much stronger than normal, and the indicator is now only marginally lower than the peak listing from 2000. new international statistics present a mixed picture. how the new information will be taken into account is something we will return to at our next monetary policy meeting. my deliberations at the september meeting let me now discuss in slightly more detail the deliberations that lie behind my personal stance with regard to monetary policy this summer and autumn. part of the recent debate has concerned whether the repo rate path advocated by the riksbank is too high. this debate has arisen partly because the market appears to believe that the riksbank will not raise the repo rate as quickly and as much as we ourselves are forecasting, and partly because the executive board members have recently had differing opinions on what level is appropriate for the rep