Sweden Interest Rate

The benchmark interest rate in Sweden was last recorded at 1 percent. Interest Rate in Sweden is reported by the Sveriges Riksbank. Historically, from 1994 until 2013, Sweden Interest Rate averaged 3.81 Percent 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. 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 includes a chart with historical data for Sweden Interest Rate.

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Sweden Interest Rate
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Sweden Benchmark Interest Rate Unchanged at 1.0%
Nuno Fontes | nuno@tradingeconomics.com  |  4/17/2013 8:43:44 AM


The Executive Board of the Riksbank has decided to hold the repo rate unchanged at 1.0 percent and to make a downward adjustment to the repo-rate path. Increases in the repo rate are not expected to begin until the second half of 2014.

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

After a weak outcome at the end of last year, the Swedish economy is now showing a gradual recovery. Sentiment among households and companies has improved and consumption and investment are expected to increase more quickly in the coming period. The brighter prospects for the Swedish economy, together with low interest rates, have contributed to an increase in housing prices. Inflation is currently low, which is due to weak demand in the economy, to the appreciation of the krona in recent years and to low price mark-ups by companies. As economic activity strengthens, inflation will rise, but is now expected to take longer before inflation attains the target of 2 per cent.
 
The repo rate needs to remain at a low level for a longer period of time to support the recovery to ensure that inflation rises towards the target. The Executive Board of the Riksbank has therefore decided to hold the repo rate unchanged at 1 per cent and to make a downward adjustment to the repo-rate path. Gradual increases in the repo rate are not expected to begin until the second half of 2014, which is around a year later than the earlier forecast.
 
Over the past year, the repo rate has been gradually cut to 1 per cent and monetary policy is currently very expansionary. There are now signs of a gradual recovery in the economy, at the same time as household debt is expected to increase from an already high level. However, it will take longer than was previously assumed before inflation rises towards the target. An even lower repo rate today would mean that inflation attained the target somewhat more quickly, but at the same time it would further increase the risk of imbalances building up. The monetary policy conducted is expected to stimulate the economy and inflation at the same time as taking into account the risks linked to households' high indebtedness.
 
Developments in the euro area are a source of uncertainty, as are developments in the exchange rate and the companies' possibility to pass on costs to consumers. If economic developments and inflation in Sweden were to develop differently from the forecasts in the Monetary Policy Update, the repo rate and repo-rate path would need to be adjusted accordingly.

ARCHIVE
Sweden Interest Rate Cut to 1%
The Executive Board of the Riksbank has decided to cut the repo rate by 0.25 percentage points to 1.0 per cent, to support the Swedish economy so that inflation rises towards the target of 2 per cent. 2012-12-18



Interest Rate | Notes

The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.










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