Monetary policy is still aimed at supporting the recovery in the economy, but a normalisation has begun. According to the assessment we made in June, the normalisation process will continue gradually through interest rate adjustments and the maturity of fixedrate loans. The new information we have received over the summer largely supports the picture of the recovery in the world economy continuing. There are some signs of weakness in the United States and Asia, while Europe looks slightly stronger than expected. The unease on the financial markets has waned, but the situation is still not normal. The new information also points to a continued recovery in the Swedish economy. However, the Riksbank will not make any new overall assessment of economic developments until the next monetary policy decision, which will be made on 1 September. By then we will have received more information and we will update our forecasts. Thank you! 8  BIS Review 109/2010  Global GDP growth Annual percentage change 7  7  6  6  5  5  4  4  3  3  2  2  1  1  0  0  -1  -1 70  75  80  85  90  95  00  05  10  Sources: IM F and the Riksbank  Note. Striped bars represent the Riksbank’s forecast.
Broken lines represent the Riksbank’s forecasts. Repo rate and expected repo rate Per cent, all agents 5  5 Repo rate Repo rate expectations 5 year ahead  4  4  3  3  2  2  1  1  0 Jan-07  0 Jul-07  Jan-08  Jul-08  Jan-09  Jul-09  Jan-10  Jul-10  Sources: TNS SIFO Prospera and the Riksbank  M onetary policy expectations Per cent, money market participants 5  5 Repo rate Forward rate 2010-06-23 Forward rate 2010-08-18  4  4  3  3  2  2  1  1  0  0 06  07  08  09  10  11  12  13  Sources: TNS SIFO Prospera, Reuters EcoWin and the Riksbank  16  BIS Review 109/2010  The Riksbank’s outstanding loans SEK billion 400  400 SEK, commercial paper SEK, variable rate SEK, fixed rate  300  300  200  200  100  100  0  0 Jul-08  Jan-09  Jul-09  Jan-10  Jul-10  Source: the Riksbank  BIS Review 109/2010  17