Asset purchases and zero interest rate providing support to the recovery and inflation
The Swedish economy has withstood the second wave of infection relatively well, supported by extensive economic policy measures. Vaccinations are now underway in many countries and despite continued uncertainty, the conditions for a rise in demand will be favourable when the spread of infection and restrictions are reduced. To facilitate the recovery and help inflation rise towards the target, monetary policy needs to remain expansionary. The Riksbank is therefore continuing to purchase assets within the envelope of SEK 700 billion. The repo rate is being left unchanged at zero per cent.