Sweden Interest Rate 1994-2015 | Data | Chart | Calendar | Forecast

Central Bank of Sweden cut its key repo rate by 0.15 percentage point to -0.25 percent and expanded its programme of asset purchases to SEK30 Billion during an unscheduled meeting held on March 18th. Interest Rate in Sweden averaged 3.58 percent from 1994 until 2015, reaching an all time high of 8.91 percent in July of 1995 and a record low of -0.25 percent in March of 2015. Interest Rate in Sweden is reported by the Sveriges Riksbank.

      Forecast    
Sweden Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
-0.25 -0.10 8.91 -0.25 1994 - 2015 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 Monday, March 30, 2015.


Sweden Cuts Repo Rate to -0.25%


Central Bank of Sweden cut its key repo rate by 0.15 percentage point to -0.25 percent and expanded its programme of asset purchases to SEK30 Billion during an unscheduled meeting held on March 18th .

Excerpts from the Statement by the Executive Board of the Riksbank:

There are signs that inflation has bottomed out and is beginning to rise, but the recent appreciation of the krona risks breaking this trend. The Executive Board of the Riksbank has decided to make monetary policy even more expansionary by cutting the repo rate by 0.15 percentage points to −0.25 per cent and buying government bonds for SEK 30 billion, to support the upturn in inflation. These measures and the readiness to do more at short notice underline that the Riksbank is safeguarding the role of the inflation target as a nominal anchor for price setting and wage formation.

The Riksbank's expansionary monetary policy has had a positive effect on the Swedish economy. GDP growth is relatively good, the labour market is strengthening gradually and there are signs that inflation has bottomed out, although it is still low.

There is still considerable uncertainty over international economic developments and the effects of the oil price. In recent weeks, there have been substantial fluctuations on the fixed-income and foreign-exchange markets. The krona has strengthened substantially, mainly against the euro, which is partly linked to the European Central Bank beginning its large asset purchases. At the same time, the Federal Reserve is moving towards its first policy rate increase, which has meant that the dollar has strengthened. It is difficult to assess the continued path for the krona in this environment. If the krona continues to strengthen in the near term, this could break off the upturn in inflation that has begun, so that it fails to rise sufficiently quickly. Low inflation over an even longer period of time increases the risk that long-term inflation expectations will fall and that the role of inflation as nominal anchor in price-setting and wage formation will weaken.

The Executive Board of the Riksbank assesses that an even more expansionary monetary policy is needed to support the upturn in inflation and ensure that long-term inflation expectations are in line with the inflation target. The Board has therefore decided to cut the repo rate by 0.15 percentage points to −0.25 per cent. Moreover, the Riksbank will buy nominal government bonds for the sum of SEK 30 billion, with maturities of up to 25 years. These purchases, which will begin on 26 March and are expected to be completed at the beginning of May 2015, are an extension of the purchases made in February and March.

The repo rate is expected to remain at −0.25 per cent at least until the second half of 2016. After that, it is expected to rise gradually and at a slower pace than was forecast in the February Monetary Policy Report. The repo-rate cut and the Riksbank's purchases of government bonds will lower interest rates in general and thus contribute to an increase in demand in the economy, and thereby in inflationary pressures.

The Riksbank is still ready to make monetary policy even more expansionary, even between the ordinary monetary policy meetings, if this is necessary to ensure that inflation rises towards the target. The repo rate could possibly be cut somewhat further and the Riksbank could buy even more government bonds. In addition, the Riksbank is prepared to launch a programme of loans to companies via the banks. In addition to these measures, there are a number of other measures that the Riksbank could take. These include the possibility of interventions on the foreign exchange or buying other types of assets.

Central Bank of Sweden | anna@tradingeconomics.com
3/18/2015 1:22:03 PM


Recent Releases

Sweden Cuts Key Rate to -0.1%, Shifts to Asset Buying
Swedish central bank lowered its key repo rate by 10 bps to -0.1 percent on February 12th, aiming to tackle low inflation. Policymakers will also buy SEK 10 billion government bonds and said they are prepared to do more at short notice. Published on 2015-02-12

Sweden Leaves Monetary Policy Unchanged
The Riksbank decided to leave the benchmark repo rate on hold at 0 percent in December, saying inflation is too low. Policymakers also said further expansionary measures were being prepared. Published on 2014-12-16


Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-12-16 08:30 AM
Riksbank Rate Decision 
0% 0.0% 0% 0%
2015-02-12 08:30 AM
Riksbank Rate Decision 
-0.1% 0% 0% 0%
2015-03-18 01:00 PM
Riksbank Interest Rate 
-0.25% -0.1%
2015-04-28 08:30 AM
Riksbank Rate Decision 
-0.25% -0.25%
2015-07-01 08:30 AM
Riksbank Rate Decision 
-0.25%
2015-09-02 08:30 AM
Riksbank Rate Decision 
-0.25%


Sweden Money Last Previous Highest Lowest Unit
Interest Rate -0.25 -0.10 8.91 -0.25 percent [+]
Interbank Rate 0.06 0.06 11.01 0.06 percent [+]
Money Supply M0 75356.00 75783.00 100883.00 6076.00 SEK Million [+]
Money Supply M3 2480183.00 2485110.00 2516425.00 45623.00 SEK Million [+]
Foreign Exchange Reserves 486285.00 486371.00 486371.00 34098.00 SEK Million [+]
Loans to Private Sector 1237264.00 1220105.00 1237264.00 344995.00 SEK Million [+]
Banks Balance Sheet 10211034.00 10245830.00 10245830.00 1784742.00 SEK Million [+]
Central Bank Balance Sheet 501280.00 502531.00 725274.00 28957.00 SEK Million [+]
Loan Growth 6.21 6.09 13.10 4.46 Percent [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.25 Mar/15 2.25 17.50 2.25 percent [+]
Brazil 12.75 Mar/15 12.25 45.00 7.25 percent [+]
Canada 0.75 Mar/15 0.75 16.00 0.25 percent [+]
China 5.35 Mar/15 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Mar/15 0.05 4.75 0.05 percent [+]
France 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Mar/15 0.05 4.75 0.05 percent [+]
India 7.50 Mar/15 7.75 14.50 4.25 percent [+]
Indonesia 7.50 Mar/15 7.50 12.75 5.75 percent [+]
Italy 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Mar/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Mar/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Russia 14.00 Mar/15 15.00 17.00 5.00 percent [+]
South Korea 1.75 Mar/15 2.00 5.25 1.75 percent [+]
Spain 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Mar/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Mar/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Mar/15 0.50 17.00 0.50 percent [+]
United States 0.25 Mar/15 0.25 20.00 0.25 percent [+]