Riksbank Interest Rate Decision
- Location: Sweden
- Currency: SEK
This event starts in:
Riksbank Interest Rate Decision is one of the key events influencing the Swedish krona quotes. The repo rate is the interest rate at which private banks borrow or deposit funds with the Riksbank for a seven-day period.
The decision is adopted by a vote of six members of the Riksbank Executive Board. Five times a year (six times a year before 2020), the Riksbank Executive Board holds meetings, during which the most important decisions regarding the national monetary policy are adopted, including the interest rate decision. The decision is made on the basis of a majority vote. If votes are equal, the decision is made by the Bank Governor.
Riksbank may cut interest rate to help inflation rise to a target level. Conversely, if inflation exceeds the target level, Riksbank would try to make the Swedish krona more expensive, for which (in addition to a complex of other measures) the interest rate is raised.
Thus, each interest rate decision adopted by the Bank directly affects the quotes of the national currency (especially in cases where the rate changes). A hike decision normally leads to the growth of Swedish krona quotes.
