Image: Riksbankshuset April 2015 by Arild Vågen under CC BY-SA 4.0

The Riksbank's move will see asset purchases under the programme rise from SEK 500 billion to up to SEK 700 billion up to 31 December 2021.

The programme now also includes treasury bills, and sovereign and municipal green bonds, the bank said following a meeting of its executive board.

It added: “The executive board has moreover decided that the Riksbank will only offer to buy corporate bonds issued by companies deemed to comply with international standards and norms for sustainability.”

The bank said that its extension of QE is intended to improve the conditions for a recovery and help inflation rise towards the target of 2 per cent.

The repo rate is being held at 0% and expected to remain at this level in coming years, the bank said.

CPI inflation is forecast to fall to 0.4% this year, and is not expected to return to the 2019 figure of 1.8% until 2023.

According to notes of the meeting, two deputy governors of the bank expressed reservations about the move to extend the programme by so much and to include treasury bills.

However, the bank’s official statement said: “By expanding and extending the asset purchase programme, the Riksbank is making it clear that comprehensive monetary policy support will be available as long as it is needed.”