Sweden Interest Rate 1994-2014 | Data | Chart | Calendar | Forecast

The benchmark interest rate in Sweden was last recorded at 0 percent. Interest Rate in Sweden averaged 3.64 Percent from 1994 until 2014, reaching an all time high of 8.91 Percent in July of 1995 and a record low of 0 Percent in October of 2014. Interest Rate in Sweden is reported by the Sveriges Riksbank.

   
 
 

Sweden Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
0.00 0.25 8.91 0.00 1994 - 2014 Percent Daily
In Sweden, interest rates decisions are taken by the Executive Board of the Central Bank of Sweden (The Riksbank). The main interest rate is the repo rate which is the rate of interest at which banks can borrow or deposit funds at the Riksbank for a period of seven days. This page provides - Sweden Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - Sweden Interest Rate - was last refreshed on Friday, October 31, 2014.


Sweden Cuts Interest Rate to 0%


At its October 28th meeting, the Riksbank decided to cut the repo rate by 0.25 percentage points to zero percent, aiming to fight low inflation. It is the lowest rate on record and it is not expected to rise until the middle of 2016.

The deposit rate is at the same time cut to -0.75 percent and the lending rate to 0.75 percent. The Executive Board has also decided that the interest-rate for fine-tuning transactions will be set at zero.

Statement by the Executive Board of the Riksbank:

Economic activity in the world as a whole is expected to continue to slowly improve but the difference between regions remains considerable. The economic outlook for the United States and the United Kingdom is good, while the recovery in the euro area is expected to be even slower than in previous assessments. The forecasts for inflation abroad are lower and several of the world's central banks are expected to continue to conduct very expansionary monetary policy for a further period of time.

In Sweden, economic activity is continuing to improve, primarily driven by good growth in household consumption and housing investment. Exports, which have been hampered by the relatively weak economic developments abroad, will increase more rapidly when economic activity improves in the countries Sweden trades with. The labour market will continue to strengthen in the years ahead and there will be a clear fall in unemployment.

Despite the fact that both GDP and employment have increased at a relatively good rate over the last 12 months, inflation has continued to be lower than expected. The broad downturn in inflation and the repeated downward revisions to the inflation forecast imply that underlying inflationary pressures are very low and lower than previously assessed. This, taken together with lower inflation and a weaker development of economic activity abroad, means that it is expected to take longer for inflation to reach 2 percent.

It is important that inflation rises towards the target of 2 percent. The repo rate is therefore being cut by 0.25 percentage points to zero percent. The low repo rate increases demand in the economy, which contributes to higher inflationary pressures. The highly-expansionary monetary policy may also contribute to keeping inflation expectations anchored around 2 percent by sending a clear signal that monetary policy is focused on inflation approaching the inflation target.

The repo rate needs to remain at this level until inflation has clearly picked up. Slow increases in the repo rate are expected to begin until the middle of 2016 and it should reach 1.75 percent towards the end of 2017. This is an unusually low repo rate at a time when economic activity is good, resource utilization is close to its normal level and CPIF inflation is 2 percent.

The fact that the repo rate is now being lowered further to get inflation to rise will increase the risks associated with high household indebtedness. It is therefore even more urgent now that these risks are managed. Reducing the risks requires measures aimed directly at household demand for credit. In addition, reforms are needed for a better-functioning housing market.

Riksbank | Joana Taborda | joana.taborda@tradingeconomics.com
10/28/2014 8:45:46 AM


Recent Releases

Swedish Central Bank Maintains Rate
At its September, 4th meeting, the Executive Board of the Riksbank decided to maintain the repo rate at 0.25 percent, as inflation has been a bit higher than expected in recent months. The central bank also said that rate increases are not expected to begin until the end of 2015. Published on 2014-09-04

Swedish Central Bank Cuts Rates to 0.25%
At its July 3rd meeting, the Executive Board of the Riksbank reduced the repo rate by 50 bps to 0.25 percent, as inflation remains lower than expected. The central bank also said that rate increases are not expected to begin until the end of 2015. Published on 2014-07-03


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-04-09 08:30 AM Sweden
Riksbank Rate Decision
0.75% 0.75% 0.75% 0.75%
2014-07-03 08:30 AM Sweden
Riksbank Rate Decision
0.25% 0.75% 0.5% 0.75%
2014-09-04 08:30 AM Sweden
Riksbank Rate Decision
0.25% 0.25% 0.25% 0.25%
2014-10-28 08:30 AM Sweden
Riksbank Rate Decision
0.0% 0.25% 0.1% 0.1%
2014-12-16 08:30 AM Sweden
Riksbank Rate Decision
0.0% 0.25%


Sweden Money Last Previous Highest Lowest Unit
Interest Rate 0.00 0.25 8.91 0.00 Percent [+]
Interbank Rate 0.47 0.52 11.01 0.47 Percent [+]
Money Supply M0 78106.00 78923.00 100883.00 6076.00 SEK Million [+]
Money Supply M3 2405661.00 2393140.00 2429048.00 45623.00 SEK Million [+]
Foreign Exchange Reserves 456827.00 440783.00 456827.00 34098.00 SEK Million [+]
Loans to Private Sector 1188743.00 1196248.00 1235649.00 344995.00 SEK Million [+]
Banks Balance Sheet 9062683.00 8911329.00 9062683.00 1784742.00 SEK Million [+]
Central Bank Balance Sheet 457547.00 455120.00 725274.00 28957.00 SEK Million [+]