Sveriges Riksbank changes monetary policy framework


Sweden’s central bank has formally changed the inflation index it uses for its monetary policy target, it announced today (September 7). It will now use the consumer price index with a fixed interest rate (CPIF), rather than the consumer price index (CPI).

Sveriges Riksbank has also adopted a 1% band of plus or minus one percentage point to the 2% inflation target. The Riksbank says it adopted the band “to illustrate that monetary policy is not able to steer inflation in detail, but that

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