Riksbank’s Flodén warns QE dividends may not continue
Sveriges Riksbank's quantitative easing (QE) programme has been profitable so far, but that is likely to change as interest rates rise, deputy governor Martin Flodén warned today (November 9).
The Riksbank funds its purchases using liabilities remunerated at the repo rate, so profits on QE come from maturity transformation, Flodén told an audience in Göteborg.
So far, the central bank has been able to pay an annual dividend of around five billion krona ($550 million) to the government.
At the
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