Monetary policy is targeted on keeping inflation at 2 per cent, with a tolerance of ±1 percentage point for deviations from this level.
The purpose of the Inflation Report is to provide a basis for monetary policy decisions and to make the Riksbank’s deliberations known to a wider public, so that monetary policy is easier to follow and understand. It is also intended to encourage a discussion of matters relating to monetary policy.
The amended Riksbank Act (1988:1385) requires that as of 1999 the Riksbank presents a written account of monetary policy to the Riksdag’s Standing Committee on Finance at least twice a year (Chapter 6, Article 4). The Riksbank has chosen to use the Inflation Report for this purpose.