The Sveriges Riksbank raised its deposit interest rate by 25 bps to -1.00 percent on December 20th in a surprise move, saying that the need for a highly expansionary monetary policy has decreased slightly as inflation and inflation expectations have become established at around 2 percent amid strong economic activity. The central bank lifted rates for the first time since July 2011 from the historic lows where they have sat since February 2016. Policymakers also said next rate rise will probably occur during the second half of 2019. Deposit Interest Rate in Sweden averaged 1.84 percent from 1994 until 2018, reaching an all time high of 8 percent in July of 1995 and a record low of -1.25 percent in February of 2016.
Deposit Interest Rate in Sweden is expected to be -1.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Deposit Interest Rate in Sweden to stand at -0.75 in 12 months time. In the long-term, the Deposit Interest Rate in Sweden is projected to trend around -0.25 percent in 2020, according to our econometric models.