RTTNews reports that Sweden's central bank maintained its key interest rate and the asset purchase programme, in order to facilitate the recovery and bring inflation back to the target.

The Executive Board of Riksbank decided to hold the repo rate at zero percent. The rate is projected to remain at this level in the years to come.

The board also kept the envelope of the asset purchase programme unchanged at SEK 700 billion.

The bank vowed to formulate the monetary policy so that it supports the recovery and inflation as long as necessary.

The bank upgraded its inflation forecast for both 2021 and 2022 to 1.3 percent, from 0.8 percent and 1.2 percent, respectively.

The growth outlook for 2021 was raised to 3 percent from 2.6 percent but that for 2022 was lowered to 3.9 percent from 5 percent.