Sweden Interest Rate

The benchmark interest rate in Sweden was last recorded at 0.25 percent. Interest Rate in Sweden averaged 3.67 Percent from 1994 until 2014, reaching an all time high of 8.91 Percent in July of 1995 and a record low of 0.25 Percent in July of 2009. Interest Rate in Sweden is reported by the Sveriges Riksbank.

   
 
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Sweden Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.75 8.91 0.25 1994 - 2014 Percent Monthly
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.


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.

Excerpt from the statement by the Executive Board of the Riksbank:

In Sweden, economic activity is continuing to strengthen, mainly driven by a strong household sector and rising housing investment. When demand abroad picks up, growth in the more export-dependent parts of the business sector will also increase. Stronger economic activity will lead to rising demand for labour and the labour market is expected to gradually improve.

At the same time as economic activity is strengthening, inflation is low and the outcomes have been lower than expected. There has been a broad fall in inflation and it is now assessed that underlying inflationary pressures are clearly lower than assessed in April. The repo rate and the repo-rate path therefore need to be even lower for inflation to rise towards the target. A further factor taken into account is that the forecasts for international policy rates have been revised downwards.

The low repo rate will contribute to higher demand in the economy as a whole, which will lead to inflation rising. It will also counteract the effects of the lower international policy rates on the exchange rate and inflation.

In addition to leading to higher inflation, the expansionary monetary policy can also contribute to inflation expectations remaining anchored around 2 percent by sending a clear signal that monetary policy will ensure that inflation approaches the inflation target within the reasonably near future. CPIF inflation is expected to reach 2 per cent at the beginning of 2016.

It is assessed as appropriate to slowly begin raising the repo rate at the end of 2015. At the end of 2017, the repo rate is expected to be just over 2 percent. From an historical perspective, this is a low policy rate in a stage where economic activity is considered to be balanced and CPIF inflation is close to 2 per cent. Similar conditions also apply for many other central banks.

The low interest rates are already contributing to a relatively rapid increase in household debt as a percentage of household income. An even lower repo rate will strengthen this tendency, thus increasing the risk of the economy developing in an unsustainable way in the long run.

Riksbank | Joana Taborda | joana.taborda@tradingeconomics.com
7/3/2014 11:54:28 AM


Recent Releases

Swedish Central Bank Holds Rates
At its April 9th, 2014 meeting, the Executive Board of the Riksbank decided to leave the repo rate unchanged at 0.75 percent. Although the repo rate is expected to remain at this low level for around a year, the central bank said it now saw a greater possibility that it may need to cut rates in the near-term as inflation remains weak. Published on 2014-04-09

Swedish Monetary Policy Unchanged in February
At its February 13th, 2014 meeting, the Executive Board of the Riksbank has decided to leave the repo rate on hold at 0.75 percent, after last meeting’s cut. The Bank said that the prospects for 2014 are good, economic activity is strengthening and the labour market is improving, but inflation is expected to be low over the coming yea, thus no rate hikes are expected until the beginning of 2015. Published on 2014-02-13


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2013-12-17 08:30 AM Sweden
Riksbank Rate Decision
0.75% 1.0% 0.75% 1%
2014-02-13 08:30 AM Sweden
Riksbank Rate Decision
0.75% 0.75% 0.75%
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% 0.75%


Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.75 8.91 0.25 Percent [+]
Interbank Rate 0.49 0.89 11.01 0.48 Percent [+]
Money Supply M0 79051.00 77530.00 100883.00 6076.00 SEK Million [+]
Money Supply M3 2429048.00 2370622.00 2429048.00 45623.00 SEK Million [+]
Foreign Exchange Reserves 439895.00 433122.00 440904.00 34098.00 SEK Million [+]
Loans to Private Sector 1195487.00 1205926.00 1235649.00 344995.00 SEK Million [+]





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