Monetary policy decision September 2019 Inflation on target with - - PowerPoint PPT Presentation

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Mar 01, 2023 311 likes •434 views

Monetary policy decision September 2019 Inflation on target with rate rises at a slower pace Increased uncertainty abroad International developments Trade conflict USA - China Brexit Political uncertainty in several countries Risk of a

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Monetary policy decision

September 2019

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Inflation on target with rate rises at a slower pace Increased uncertainty abroad

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International developments

Trade conflict USA - China Brexit Political uncertainty in several countries Risk of a faster slowdown abroad

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Lower interest rates

Per cent. Yields on 10-year government bonds. The vertical line indicates the monetary policy meeting in July. Sources: National central banks and the Riksbank

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Global economic activity slowing down

More normal growth

Annual percentage change and share of labour force. Sources: Bureau of Economic Analysis, Eurostat and OECD

Strong labour market

2 4 6 8 10 12 14 2 4 6 8 10 12 14 01 05 09 13 17

Unemployment, United States Unemployment, euro area

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Swedish economy in a calmer phase

GDP growth slowing down Indicators giving support for calmer growth

Annual percentage change and index respectively, mean value = 100, standard deviation = 10. Broken lines represent mean values since 1993. Sources: National Institute of Economic Research, Statistics Sweden and the Riksbank

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Strong development on the labour market slowing down

Percentage of labour force, 15-74 years, seasonally adjusted data. Sources: Statistics Sweden and the Riksbank

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Inflation on target

Underlying inflation at 2 per cent Higher resource utilisation than normal Rising food prices Earlier krona depreciations

Annual percentage change. Sources: Statistics Sweden and the Riksbank

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Inflation expectations close to 2 per cent

Per cent, average. Source: Kantar Sifo Prospera

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Monetary policy considerations

Outcomes largely in line with the forecast Economic activity as expected entering a calmer phase Inflation on target Worsened sentiment in the global economy Low interest rates abroad for a longer time Rate increases at a slower pace

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Low interest rates giving support to economic activity and inflation

Per cent. Source: The Riksbank

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