The objective of the Riksbank's monetary policy is price stability. In order to meet this objective, the Riksbank steers the market’s shortest interest rate – the overnight rate. How the Riksbank steers this interest rate is described in the publication "The Riksbank's management of interest rates – monetary policy in practice". The method used by the Riksbank to manage interest rates is relatively simple and is also very similar to that applied by other central banks.
The essence of the Riksbank’s interest rate management is the Riksbank's ability to determine the terms and conditions for the banks’ loans and deposits through their accounts in the payment system, RIX.