Macro Musings with David Beckworth Per Åsberg Sommar on the State of the Riksbank and Operating Systems Around the World
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Jan 5, 2026 Per Åsberg Sommar, a senior advisor at the Swedish central bank, dives into the evolution of the Riksbank, where he played a key role. He discusses the transition to inflation targeting in 1995 and the historical context of Sweden's monetary policy. Per provides insights into the Riksbank's innovative Deposit Requirement Facility designed to bolster capital. He also explores how central banks globally are shifting towards demand-driven systems, highlighting the interaction between policies and market behaviors.
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Corridor Framework Anchors Rate Control
- The Riksbank's operational framework uses a corridor with standing facilities and fine-tuning to control overnight rates.
- This design treats reserves as supply determined by banks' demand given facility pricing.
Certificates Let The Bank Drain Liquidity
- Riksbank's certificates act as tradable securities that let the bank drain liquidity while preserving interest-rate control.
- Banks can use certificates as collateral or sell them back, making system liquidity demand-driven.
Narrow Corridor Ensures Robust Control
- The Riksbank narrowed its corridor to ±10 basis points and tightened collateral to ensure overnight rate control in both ample and scarce regimes.
- This keeps policy control even if QE creates large liquidity surpluses or QT reduces them.