Riksbank Minutes: Members Split Over Interest Rate Decision

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Wednesday, the minutes of the Executive Board meeting of Riksbank held on February 10 showed that the decision to hold the interest rate at 0.25% was not unanimous. Among six members, Deputy Governor Lars Svensson entered a reservation against the decision and advocated cutting the repo rate to zero per cent.

Deputy Governors Lars Nyberg and Barbro Wickman-Parak said they would favor a hike in the interest rate by July. At the same time, Deputy Governor Svante Öberg holds the view that the Riksbank should begin to raise the interest rate at the beginning of the autumn or perhaps as early as July.

Members assessed that economic upturn is on firmer ground now and there is reason to begin raising the repo rate slightly earlier than was forecast in December. According to the majority, it is expected that the Riksbank will begin to raise the repo rate with effect from the summer or early autumn, the minutes said.

Further, the minutes showed, "Developments in Greece have little immediate effect on Sweden. Swedish banks have very little exposure to Greece."

Wednesday, the minutes of the Executive Board meeting of Riksbank held on February 10 showed that the decision to hold the interest rate at 0.25% was not unanimous. (Market News Provided by RTTNews)