Sveriges Riksbank published a speech by Governor Erik Thedéen on monetary policy communication, setting out how the Bank’s high-transparency approach is intended to improve understanding of its reaction function while acknowledging the practical challenge of communicating uncertainty. The speech reiterated that the Riksbank’s published policy-rate forecast is a forecast rather than a commitment and that policy decisions are conditioned on new information about the outlook for the economy and inflation. Thedéen highlighted the Riksbank’s practice of publishing its own policy-rate path and attributed minutes of monetary policy meetings, and described recent changes aimed at making guidance clearer when uncertainty is elevated. These include moving in 2024 to eight regular monetary policy meetings a year, with Monetary Policy Reports (including new forecasts) at four meetings and Monetary Policy Updates (without new forecasts) at the others, supported by more verbal guidance when referring back to previous projections. The Monetary Policy Report has also been adjusted to distinguish near-term and longer-term rate guidance more clearly, with the opening section focusing on the policy-rate assessment over the next three quarters and a later chapter covering the full three-year forecast period and its greater uncertainty. Alternative scenarios are now published in every Monetary Policy Report and given greater prominence to make risks and uncertainty more concrete, including how policy could evolve under those scenarios.
Riksbank 2025-06-02
Sveriges Riksbank details monetary policy communication changes with eight meetings a year and more prominent alternative scenarios
Sveriges Riksbank Governor Erik Thedéen highlighted the Bank's transparent monetary policy communication to improve understanding of its reaction function and address uncertainty. Starting 2024, the Riksbank will hold eight annual monetary policy meetings, with four featuring Monetary Policy Reports and four with Updates, plus more verbal guidance. Recent changes include clearer rate guidance distinctions and alternative scenarios in reports to illustrate risks and uncertainties.