RTTNews - Executive Board members of the Riksbank were not unanimous in cutting the repo rate to a record low of 0.25%, minutes of the monetary policy meeting held on July 1 showed Thursday.
According to minutes, deputy Governor Lars Svensson entered a reservation against the decision and advocated cutting the repo rate to 0% and a repo rate path in line with the scenario for a lower repo rate in the Monetary Policy Report, so that the repo rate would be kept at this level for one year.
Deputy Governor Barbro Wickman-Parak supported the decision to cut the repo rate to 0.25%, but entered a reservation against the growth forecasts, and thereby the repo rate path. Wickman-Parak said her stance was due to a more positive view of economic activity both abroad and in Sweden further ahead, which would mean that the repo rate would need to be raised earlier than is forecast in the main scenario of the Monetary Policy Report.
In July's meeting, the executive board also decided to offer loans totaling SEK 100 billion to the banks at a fixed interest rate and with a maturity of 12 months.
Also on Thursday, Riksbank Governor, Stefan Ingves said, It was appropriate to reduce the repo rate to 0.25% and to complement this cut with a decision to offer loans to the banks at a fixed interest rate. There are also good reasons for allowing the repo rate to remain at this low level for a relatively long period, governor said.
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