Account of Monetary Policy in 2024: Inflation on target
News The Riksbank's interest rate hikes in 2022-2023 helped bring inflation back down and it was close to the target throughout 2024. Annual average CPIF inflation was 1.9 per cent and long-term inflation expectations were stable at 2 per cent. The Riksbank assesses that target fulfilment was good in 2024.
With lower inflation and a more stable inflation outlook over the year, the need for contractionary monetary policy gradually decreased. The policy rate was lowered relatively quickly over the year, from 4 to 2.5 per cent. This contributed to growth beginning to recover, after two years of roughly unchanged GDP. GDP increased by 1 per cent in 2024 compared with 2023, although the labour market remained weak.
Read more about last year's monetary policy decisions and the reasons behind them in the Account of Monetary Policy. The report also discusses a number of issues from the monetary policy debate during the year, including the timing of the Riksbank's interest rate cuts, the discussion on corporate pricing and the development of the neutral interest rate.
ACCOUNT OF MONETARY POLICY
Every year, the Riksdag Committee on Finance examines and assesses the monetary policy conducted by the Riksbank during the preceding years. The Account of Monetary Policy provides a basis for that evaluation.