See also Forbes (2022) for further reasoning. 14 See also Hauser (2021). 6 [19]  celerated. However, this does not necessarily mean that the order of the increases in the policy rate and QT changes. This is also reflected in the way that many central banks around the world are reasoning.15  … which means “reinvestment-rate increase-QT” but at a faster pace The consensus that can be seen internationally is for central banks to manage the tightening phase by following the principle of "reinvestment-rate increase-QT" but at a much faster pace than was seen before. Let me give some examples. The Federal Reserve has now raised its policy rate twice by a total of 0.75 percentage points and plans to start reducing its asset holdings on 1 June, making the 'reinvestment phase', which started in March, very short compared to the period of almost two years preceding the previous QT period prior to the coronavirus crisis.16 The Bank of England specified its plan at the beginning of the autumn.17 This involved QT beginning when the policy rate had reached 0.5 per cent, which it did in February this year. As they concluded the QE phase in December, when they raised their policy rate for the first time after the crisis, it also means in this case that the 'reinvestment phase' has become very short.
SPEECH DATE:  6 May 2022  SPEAKER:  Cecilia Skingsley  VENUE:  Handelsbanken  High inflation and a rising repo rate – what happens to the Riksbank's balance sheet?1 As you know, inflation in Sweden is now at the highest levels in several decades. We have entered a period in which the repo rate needs to be raised – and much more than we expected earlier. ‘The inflation map has been redrawn’, and this is a situation we share with many other central banks worldwide (see Figure 1). However, as you also know, the Riksbank implemented strong monetary policy measures during the coronavirus crisis, where an important element was asset purchases. The question then arises: Now that we are starting to raise interest rates – what happens to the assets on our balance sheet? When I answer that question, I would first like to go back in time a little and explain how the assets originally got there. Background – why we purchased debt securities for SEK 700 billion.