Although uncertainty has increased, and economic activity abroad so far has been slightly weaker, the Swedish economy has developed largely in line with the outline we sketched in July. Moreover, the repo rate is still low. Swedish banks are stable The Riksbank has two main tasks. The first is to conduct monetary policy with the objective that inflation shall be low and stable. The second is to safeguard financial stability. The Riksbank therefore closely monitors developments in the financial markets. During the summer we have extended out monitoring as a result of the international turbulence. Swedish banks are still financially strong. They currently have good access to funding on all of the markets they normally use. The Riksbank’s stress tests also show that they have a good capacity to manage increased loan losses. But as the Swedish banks obtain funding largely through market borrowing in foreign currency, they are of course vulnerable to problems abroad. We currently have daily contacts with the banks and we have access to data on their funding. So far, there is nothing to indicate that it will be necessary for us to lend money to the banks. Next decision is on 6 September We are currently working hard on new analyses and forecasts for the monetary policy meeting on 6 September. I have today attempted to outline events during the summer and the issues I consider we will discuss at our next monetary policy meeting.
My colleagues and I will return to how this will ultimately affect monetary policy in the coming period in a couple of weeks’ time when our decision has been made. Moreover, we are constantly monitoring developments in the financial markets. BIS central bankers’ speeches  7  Figures  1. World GDP growth Annual percentage change, calendar-adjusted data 6  6  5  5  4  4  3  3  2  2  1  1  0  0  -1  -1 80  85  90  95  00  05  10  Sources: The IMF and the Riksbank  2. Commodity prices Index 2005 = 100, USD 350  350 Metals Other agricultural products  300  300  Food  250  250  Crude oil  200  200  150  150  100  100  50  50  0  0 00  01  02  03  04  05  06  07  08  09  10  11  Note. Data are updated with new outcomes after the publication of the July Monetary Policy Report. Sources: The Economist and Intercontinental Exchange. 8  BIS central bankers’ speeches  3.