The Executive Board of the Riksbank makes decisions on the interest rate. This is normally done six times a year at one of its monetary policy meetings. The interest rate decision is a majority decision and the Governor has the casting vote. If any of the members has a different opinion, this is shown in the minutes. The way in which the members have reasoned and voted at the meeting is reported in the minutes of the meeting, which are published approximately two week later.
The Board members may not take instructions
The Sveriges Riksbank Act stipulates that the Riksbank shall be independent. This means, for instance, that members of the Executive Board may not seek or receive instructions from the Government or Parliament when they make decisions regarding the interest rate. The idea is that they shall always be free to maintain price stability and not be tempted for instance to contribute to boosting growth and employment with lower interest rates during an election year.
The decisions are based on a forecast
As monetary policy has an impact on demand and inflation with a time lag, the Riksbank must be forward-looking and base its interest rate decisions on a forecast of future economic developments. Prior to every interest rate decision the Bank therefore makes forecasts of, for instance, inflation, economic activity and the repo rate over the coming years. These are interlinked and the path for the repo rate that is described reflects the Executive Board's view of what at that point in time constitutes well-balanced monetary policy.
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You can find more information about the Riksbank’s forecasts and interest rate decisions under the links below.