Sweden Interest Rate  1994-2018 | Data | Chart | Calendar | Forecast

The central bank of Sweden held its benchmark interest rate at -0.5 percent on April 26th, as widely expected, saying underlying inflation has been somewhat lower than expected recently, which raises questions regarding the strength of the development in inflation. Also, the central bank added that the repo rate will begin to increase towards the end of the year, which is somewhat later than previously forecast. Interest Rate in Sweden averaged 3.18 percent from 1994 until 2018, 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.

Sweden Interest Rate
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Sweden Holds Key Interest Rate at -0.5%


The central bank of Sweden held its benchmark interest rate at -0.5 percent on April 26th, as widely expected, saying underlying inflation has been somewhat lower than expected recently, which raises questions regarding the strength of the development in inflation. Also, the central bank added that the repo rate will begin to increase towards the end of the year, which is somewhat later than previously forecast.

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

The overall picture of the economic outlook and inflation prospects remains largely unchanged since the monetary policy meeting in February. Economic activity abroad is continuing to strengthen. However, despite growth being at a high level and unemployment having fallen, inflationary pressures remain moderate, particularly in the euro area.

Conditions in the Swedish economy are strong; the employment rate is high and unemployment has fallen to the lowest level since the financial crisis. Inflation has been close to the target over the past year. In March, CPIF inflation was 2.0 per cent.

One reason why inflation is now 2 per cent is that energy prices have increased rapidly. Underlying inflation, on the other hand, has been unexpectedly low recently, which raises questions regarding the strength of the development in inflation. The weakening of the krona exchange rate in recent months is contributing to higher inflation, but if CPIF inflation is to remain close to the target going forward, it is important that economic activity is strong and has an impact on price developments. It is also important that the krona exchange rate develops in a way compatible with inflation stabilising close to the target.

Monetary policy therefore needs to remain expansionary and the Executive Board has decided to hold the repo rate unchanged at −0.50 per cent. Given the questions regarding underlying inflation, the forecast for the repo rate has been revised down somewhat and indicates that the rate will start to be raised at a slow pace towards the end of the year. The Riksbank’s holdings of government bonds amount to just over SEK 320 billion, expressed as a nominal amount. Until further notice, redemptions and coupon payments will be reinvested in the bond portfolio.

It has taken a long time to bring up inflation and inflation expectations, and there is considerable uncertainty over the development of inflation. Monetary policy thus needs to proceed cautiously. If the conditions for inflation were to change, the Executive Board is prepared to adjust monetary policy. The risks of too low inflation merit particular attention, as at the prevailing interest rate levels this is more difficult to manage than inflation that is too high.

The low interest rates contribute to increasing the risks linked to high and rising household indebtedness. At the same time, the fundamental causes of the high household indebtedness still remain. Achieving long-term sustainable development in the Swedish economy therefore requires measures within housing policy, taxation policy and, where necessary, within macroprudential policy.


Riksbank | Joana Ferreira | joana.ferreira@tradingeconomics.com
4/26/2018 7:38:08 AM



Calendar GMT Actual Previous Consensus TEForecast
2017-12-20 08:30 AM Riksbank Rate Decision -0.5% -0.5% -0.5% -0.5%
2018-02-14 08:30 AM Riksbank Rate Decision -0.5% -0.5% -0.5% -0.5%
2018-04-26 07:30 AM Riksbank Rate Decision -0.5% -0.5% -0.5% -0.5%
2018-07-02 07:30 AM Riksbank Rate Decision -0.5% -0.5%
2018-07-03 07:30 AM Monetary Policy Report
2018-07-12 07:30 AM Monetary Policy Meeting Minutes


Sweden Money Last Previous Highest Lowest Unit
Interest Rate -0.50 -0.50 8.91 -0.50 percent [+]
Interbank Rate -0.37 -0.38 13.13 -0.65 percent [+]
Money Supply M0 54957.00 54744.00 100763.00 53430.00 SEK Million [+]
Money Supply M3 3353968.00 3338186.00 3353968.00 987445.00 SEK Million [+]
Banks Balance Sheet 13664616.00 12893824.00 13664616.00 1784742.00 SEK Million [+]
Foreign Exchange Reserves 517383.00 522161.00 547140.00 34098.00 SEK Million [+]
Loans to Private Sector 1381746.00 1365650.00 1381746.00 344995.00 SEK Million [+]
Deposit Interest Rate -1.25 -1.25 8.00 -1.25 percent [+]
Lending Rate 0.25 0.25 9.50 0.25 percent [+]
Loan Growth 6.80 6.90 23.50 -3.30 percent [+]
Money Supply M1 2787405.00 2772965.00 2787405.00 627592.00 SEK Million [+]
Money Supply M2 3239383.00 3220531.00 3239383.00 840564.00 SEK Million [+]
Private Debt to GDP 263.47 268.81 274.89 186.73 percent [+]
Central Bank Balance Sheet 895826.00 897370.00 897370.00 28957.00 SEK Million [+]


Sweden Interest Rate

In Sweden, benchmark interest rate is set 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. The Riksbank's target is to hold inflation in terms of the CPIF (the CPI with a fixed interest rate) around 2 percent a year. This page provides the latest reported value for - Sweden Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Sweden Interest Rate - actual data, historical chart and calendar of releases - was last updated on June of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
-0.50 -0.50 8.91 -0.50 1994 - 2018 percent Daily




interest rate by Country
Country Last
Turkey 17.75 Jun/18
Mexico 7.50 May/18
Russia 7.25 Jun/18
Brazil 6.50 May/18
India 6.25 Jun/18
Indonesia 4.75 May/18
China 4.35 May/18
United States 2.00 Jun/18
Australia 1.50 Jun/18
South Korea 1.50 May/18
Canada 1.25 May/18
United Kingdom 0.50 May/18
Euro Area 0.00 Jun/18
France 0.00 Jun/18
Germany 0.00 Jun/18
Italy 0.00 Jun/18
Netherlands 0.00 Jun/18
Spain 0.00 Jun/18
Japan -0.10 Jun/18
Switzerland -0.75 May/18


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