The central bank of Sweden left its key repo rate steady at -0.25 percent on February 13th 2019, in line with market expectations and following a surprise 25bps hike in the previous meeting. Policymakers said economic developments in Sweden and abroad have entered a phase of lower growth and the conditions for inflation to remain close to 2 percent in the coming years have not changed to any great extent. Also, the central bank reiterated the next hike in the repo rate is seen during the second half of 2019, provided that the economic outlook and inflation prospects are as expected. Interest Rate in Sweden averaged 3.07 percent from 1994 until 2019, reaching an all time high of 8.91 percent in July of 1995 and a record low of -0.50 percent in February of 2016.
Interest Rate in Sweden is expected to be -0.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Sweden to stand at 0.10 in 12 months time. In the long-term, the Sweden Interest Rate is projected to trend around 1.00 percent in 2020, according to our econometric models.