Decisions and communication
The Executive Board of the Riksbank usually holds eight monetary policy meetings over the course of a year, at which it makes decisions regarding the repo rate. An Inflation Report is published in connection with four of these meetings, containing the Riksbank’s overall view of the outlook for inflation and economic activity over the coming two years.
The work involved in producing an Inflation Report is begun at the Monetary Policy Department. First, the department draws up an internal document that contains its views on the inflation outlook. This document is then presented to the Executive Board and revised into an Inflation Report.
As the Riksbank has an inflation target, the inflation situation is crucial for monetary policy decisions. The effects of monetary policy are exerted with a certain time lag, however. This is one reason why the Riksbank must adopt a forward-looking approach and base its decisions on a forecast of future inflation. If the inflation forecast is higher than the Riksbank's target, the repo rate is normally raised. Correspondingly, the repo rate is normally lowered if inflation is forecast to be below target.
Approximately two weeks after a monetary policy meeting the Riksbank publishes the minutes, in which it is possible to follow the discussion that led to the actual interest rate decision and how the different Executive Board members voted. When the minutes have been published, the Board members may give speeches in which they explain the way they voted.
More information about the decision-making process, the factors that influence interest rate decisions, and how the Riksbank communicates, can be found under the links on the left-hand side of the page.