Increasingly strong economic activity creates the conditions for inflation to continue rising. But there are risks that can jeopardise the upturn in inflation. Monetary policy therefore needs to remain very expansionary. The Executive Board of the Riksbank has decided to continue purchasing government bonds during the first six months of 2017, both nominal and real bonds, each corresponding to SEK 15 billion. The repo rate is retained at −0.50 per cent and there is still a greater probability that the rate will be cut than that it will be raised in the near term. Increases in the repo rate are not expected to begin until the beginning of 2018.