Riksbank Ends Negative Rates But Remains Expansionary: Ingves

The video discusses the timing of economic decisions, focusing on inflation targets and the repo rate. It covers the impact of quantitative easing and lessons learned from negative rates. The discussion includes future rate policy and stability risks, emphasizing the need for flexibility and understanding of economic tools.

Why was the timing considered good for changing the interest rate policy?

• Because inflation was too high

• Due to sustained economic growth and inflation adjustments

• To match global interest rates

• To increase government debt

What was a key reason for implementing the QE program?

• To support the economy alongside negative rates

• To increase inflation to 5%

• To decrease liquidity in the system

• To reduce government debt

How much of the outstanding government debt was purchased under the QE program?

• 60%

• 40%

• 25%

• 10%

What is a major lesson learned from the period of negative interest rates?

• Negative rates should be permanent

• Flexibility and readiness in policy are crucial

• Interest rates should never be negative

• Balance sheets should always be reduced

What is the current stance on the negative rate policy?

• It is being reassessed

• It is considered a long-term solution

• It is not reassessed at this juncture

• It is being phased out immediately