In the September 2018 Monetary Policy Report, the Executive Board's assessment was that the economic upturn was continuing and that capacity utilisation was close to a normal level. Underlying inflation was close to the 2 percent target. The key policy rate was raised from 0.50 to 0.75 percent in September, and the Executive Board's assessment was that the key policy rate would most likely be increased further in 2019 Q1.

The outlook and balance of risks imply a gradual increase in the key policy rate. Economic growth has been a little lower and inflation somewhat higher than projected, but the outlook and the balance of risks do not appear to have changed substantially since the September Report.

Background material and charts