Sweden’s Riksdag Committee on Finance has published an independent evaluation of Sveriges Riksbank’s monetary policy over 2015–2024, authored by Morten Ravn and Carolyn Wilkins. The report judges that the Riksbank’s decisions were often reasonable in exceptionally challenging conditions, but identifies weaknesses in the governance and risk assessment of unconventional measures, forecasting performance around the 2021–2022 inflation surge, and coordination across monetary, fiscal, debt-management and financial-stability authorities, recommending targeted reforms rather than a wholesale redesign of Sweden’s monetary framework. The evaluation reviews performance against price stability, the use and consequences of negative rates, quantitative easing and forward guidance, the clarity and effectiveness of communications, and forecasting and scenario analysis. It also examines the monetary–fiscal mix and balance-sheet implications, Sweden’s exchange-rate framework, and the foreign-exchange reserve framework including the shift to self-financing and subsequent hedging. Recommendations include a more structured framework for assessing and exiting unconventional tools, strengthened information sharing and better alignment with debt-management strategy, enhanced forecasting, modelling and risk analysis, stronger coordination mechanisms for macroprudential policy, and a systematic review of Sweden’s exchange-rate regime alongside a more transparent quantitative approach to reserve adequacy and clarified responsibilities for reserve financing and hedging. Governor Erik Thedéen indicated the Riksbank will review the report and provide comments in connection with the Committee on Finance’s hearing on 17 February and in the Riksbank’s forthcoming statement.

Original source View in tracker