We have seen an unexpectedly rapid and broad weakening in economic activity and it is clear that this will continue to be weak in the coming period. Despite global and forceful measures to resolve the financial crisis and to alleviate its effects, it is still difficult and expensive to borrow, both for households and companies. The oil price and other commodity prices have continued to fall, which leads to lower cost pressures. Inflation will fall quickly and undershoot the target next year. We considered that a much lower repo rate was necessary to attain the inflation target a couple of years ahead and at the same time contribute to ensuring economic developments are not too weak. Another reason why such a large cut was necessary is that the interest rates paid by the general public recently as a result of the financial crisis have been higher than normal in relation to the level of the repo rate, which in itself has a constraining effect. The financial crisis makes demands on us to be flexible, to act quickly and forcefully. We have tried to work in this way so far, not least by means of new solutions and measures we would not normally use. The fact that we are giving the banks the possibility to borrow in Swedish krona from the Riksbank at longer maturities than normal and that we have supplied loans in US dollars are examples of this.
Irma Rosenberg: My time at the Riksbank – some final reflections on challenges along the way Speech by Ms Irma Rosenberg, First Deputy Governor of the Sveriges Riksbank, at SEB, Stockholm, 8 December 2008. *  *  *  On a chilly day in January 1976 I crossed the threshold of the newly-built Riksbank building for the first time. It was true that all employees were moving into the new building that day, which contributed to the more or less organised chaos of furniture gone adrift and employees trying to find their new offices. But for me it was probably an extra special day. It was my first day at work. And it was my first job outside of the university after taking my PhD. Almost 33 years have passed since that day in January. And as I leave the Riksbank at the end of the year one could say that I have come full circle. It was where I began my career. In 1986 I left the bank, but in January 2003 I once again crossed the threshold at Brunkebergstorg 11, then as one of the six members of the Executive Board. This will now be my final full-time job. The years have been eventful ones, with more than a little drama from time to time.