Reporäntan

Reporäntan is a key monetary policy tool used by central banks, most notably by the European Central Bank (ECB) and Sveriges Riksbank (Sweden's central bank). It refers to the interest rate at which commercial banks can borrow money from the central bank on a short-term basis, typically overnight, through repurchase agreements. In essence, it's the rate the central bank charges commercial banks for very short-term liquidity.

Changes in reporäntan have a significant impact on the broader economy. When the central bank raises reporäntan, it becomes more expensive for commercial banks to borrow money. This increased cost is usually passed on to consumers and businesses in the form of higher interest rates on loans, mortgages, and credit cards. Conversely, lowering reporäntan makes borrowing cheaper, encouraging spending and investment.

The primary goal of adjusting reporäntan is to influence inflation and economic growth. A higher reporänta is typically used to curb inflation by reducing demand, while a lower reporänta aims to stimulate economic activity during periods of slow growth or recession. Central banks closely monitor economic indicators to determine the appropriate level for reporäntan to achieve their macroeconomic objectives.