monetary policy update september 2012

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Monetary Policy Update September 2012

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Monetary Policy Update September 2012. Repo rate cut Counteracts low inflation ahead. Continued unease on financial markets  . Source: Reuters EcoWin. Government bond rates with 10 years left to maturity, per cent. Structural problems in Europe. Unit labour cost Index , 1999 = 100. - PowerPoint PPT Presentation

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Page 1: Monetary Policy Update September 2012

Monetary Policy Update

September 2012

Page 2: Monetary Policy Update September 2012

Repo rate cut

Counteracts low inflation ahead

Page 3: Monetary Policy Update September 2012

Continued unease on financial markets  

Government bond rates with 10 years left to maturity, per cent Source: Reuters EcoWin

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07 08 09 10 11 12

Spain

Italy

Germany

Sweden

Page 4: Monetary Policy Update September 2012

Structural problems in Europe

Source: OECDUnit labour costIndex, 1999 = 100

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90

100

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99 01 03 05 07 09 11

Italy

Spain

Germany

Greece

Page 5: Monetary Policy Update September 2012

Weak developments in euro area

GDP, annual percentage change Sources: Bureau of Economic Analysis, Eurostat and the Riksbank

-6

-4

-2

0

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-6

-4

-2

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00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

The world

USA

Euro area

Page 6: Monetary Policy Update September 2012

Swedish economy relatively strong

GDP, quarterly changes in per cent calculated as an annual rate, seasonally adjusted data

Sources: Statistics Sweden and the Riksbank

-16

-12

-8

-4

0

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12

-16

-12

-8

-4

0

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07 09 11 13 15

July

September

Page 7: Monetary Policy Update September 2012

Growth dampened in coming period

Source: National Institute of Economic Research

Index, average = 100, standard deviation = 10

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100

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120

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100

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120

00 02 04 06 08 10 12

The Economic TendencyIndicatorMean

+/- one standarddeviation

Page 8: Monetary Policy Update September 2012

Stronger krona

Competition-weighted nominal exchange rate, TCW, Index, 18 Nov 1992 = 100

Source: The Riksbank

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160

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160

07 09 11 13 15

July

September

Page 9: Monetary Policy Update September 2012

Labour market in line with expectations

Per cent of the labour force, aged 15-74, quarterly data,seasonally adjusted data

Sources: Statistics Sweden and the Riksbank

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July

September

Page 10: Monetary Policy Update September 2012

Lower inflationary pressure

Weak growth in the coming period Good productivity growth Stronger krona

Page 11: Monetary Policy Update September 2012

Lower repo rate

Repo rate, per cent, quarterly averages Source: The Riksbank

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07 08 09 10 11 12 13 14 15

July

September

Page 12: Monetary Policy Update September 2012

Inflation rising towards the target

Annual percentage change. The CPIF is the CPI with a fixed mortgage rate

Sources: Statistics Sweden and the Riksbank

-2

-1

0

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-2

-1

0

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07 09 11 13 15

CPIF

CPI

Page 13: Monetary Policy Update September 2012

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07 09 11 13 15

90%75%50%OutcomeForecast

A forecast, not a promise

Repo rate, per cent, quarterly averages Source: The Riksbank

Page 14: Monetary Policy Update September 2012

Repo rate cut

Counteracts low inflation ahead