The riksbank is considering to change the target variable for the inflation target from CPI CPIF. Since inflation will always vary around 2 per cent is also being considered a bands set by the +/- 1 percentage point, which illustrates this uncertainty.
It writes the Riksbank in a proposal on Tuesday. This proposal is now out for consultation.
The riksbank writes that the changes now being considered does not involve any change in the conduct of monetary policy. The CPIF, the cpi with a fixed interest rate, some time ago already been the Riksbank’s operational target variable.
”The riksbank will continue to strive towards a 2% inflation regardless of whether the outcome lies inside or outside the variationsbandet. It is considered variationsbandet is not, therefore, a so-called target range,” writes the Riksbank.
The proposal, now out for consultation and if the changes are decided, it is expected to apply at the monetary policy meeting in september 2017.
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