The Sveriges Riksbank raised its repo rate by 25 bps to -0.25 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 its policy rate for the first time since July 2011 from the historic low where it has sat since February 2016. Policymakers also said next rate rise will probably occur during the second half of 2019. Interest Rate in Sweden averaged 3.10 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.

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 0.00 in 12 months time. In the long-term, the Sweden Interest Rate is projected to trend around 0.50 percent in 2020, according to our econometric models.

Sweden Interest Rate
width
height
Forecast Data Chart
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.


Calendar GMT Actual Previous Consensus TEForecast
2018-07-03 07:30 AM Riksbank Rate Decision -0.5% -0.5% -0.5% -0.5%
2018-09-06 07:30 AM Riksbank Rate Decision -0.5% -0.5% -0.5% -0.5%
2018-10-24 07:30 AM Riksbank Rate Decision -0.5% -0.5% -0.5% -0.5%
2018-12-20 08:30 AM Riksbank Rate Decision -0.25% -0.5% -0.5% -0.5%
2019-02-12 08:30 AM Riksbank Rate Decision -0.25%
2019-04-24 07:30 AM Riksbank Rate Decision
2019-07-02 07:30 AM Riksbank Rate Decision



Sweden Hikes Repo Rate for 1st Time since 2011

The Sveriges Riksbank raised its repo rate by 25 bps to -0.25 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 its policy rate for the first time since July 2011 from the historic low where it has sat since February 2016. Policymakers also said next rate rise will probably occur during the second half of 2019.

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

The global economy, which has grown rapidly in recent years, is now entering a phase of more subdued GDP growth, which is in line with the Riksbank's earlier forecasts. Cost pressures are gradually rising abroad, and monetary policy is moving in a less expansionary direction. However, there is still considerable uncertainty over global economic developments, not least with regard to the effects of Brexit and the trade conflict between the United States and several other countries.

Economic activity in Sweden is still strong, although GDP growth and inflation have been weaker than expected. The employment rate is historically high, companies are reporting major shortages of labour and cost pressures are rising. The strong economic activity has contributed to inflation rising gradually since 2014 and being close to the 2 per cent target in recent years.

Even though inflation has been lower than expected, the conditions remain good for inflation to stay close to the inflation target going forward. As inflation and inflation expectations have become established at around 2 per cent, the need for a highly expansionary monetary policy has decreased slightly. The Executive Board has therefore decided to raise the repo rate from −0.50 per cent to −0.25 per cent. The inflation forecast assumes that monetary policy stimulation will be decreased slowly.

It is important that economic activity continues to be strong and has an impact on price increases. With a repo rate of −0.25 per cent, monetary policy is still expansionary and will thereby also continue to support economic activity. The pacing of rate rises in the period ahead will be adjusted according to the development of the economic outlook and inflation prospects. The fact that inflation has been lower than expected recently illustrates that there is uncertainty over the strength of inflationary pressures. The forecast for the repo rate therefore indicates that the next rate rise will probably occur during the second half of 2019. After this, the forecast indicates approximately two rate rises per year by 0.25 percentage points each time. Reinvestments of principal payments and coupons in the government bond portfolio will continue until further notice.

The low interest rates are exacerbating the risks linked to high and rising household indebtedness, while the fundamental causes of the high indebtedness still remain. It is essential, to ensure that the development of the Swedish economy is sustainable in the long term, that measures are taken in housing policy and taxation policy and that macroprudential policy is designed appropriately.


Sveriges Riksbank | Joana Ferreira | joana.ferreira@tradingeconomics.com
12/20/2018 8:47:14 AM



Sweden Money Last Previous Highest Lowest Unit
Interest Rate -0.25 -0.50 8.91 -0.50 percent [+]
Interbank Rate -0.08 -0.08 13.13 -0.65 percent [+]
Money Supply M0 57897.00 57737.00 100763.00 53430.00 SEK Million [+]
Money Supply M3 3435738.00 3398509.00 3435738.00 987445.00 SEK Million [+]
Banks Balance Sheet 10010905.00 10081929.00 13664616.00 1784742.00 SEK Million [+]
Foreign Exchange Reserves 534355.00 539121.00 551350.00 34098.00 SEK Million [+]
Loans to Private Sector 1416257.00 1412960.00 1416257.00 344995.00 SEK Million [+]
Deposit Interest Rate -1.00 -1.25 8.00 -1.25 percent [+]
Lending Rate 0.50 0.25 9.50 0.25 percent [+]
Loan Growth 5.70 5.80 23.50 -3.30 percent [+]
Money Supply M1 2904088.00 2857347.00 2904088.00 627592.00 SEK Million [+]
Money Supply M2 3348953.00 3296521.00 3348953.00 840564.00 SEK Million [+]
Private Debt to GDP 271.50 267.30 274.60 181.00 percent [+]
Central Bank Balance Sheet 934436.00 937537.00 938223.00 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 January of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
-0.25 -0.50 8.91 -0.50 1994 - 2018 percent Daily




Country Last Previous
Argentina 57.13 Jan/19
Turkey 24.00 Jan/19
Mexico 8.25 Dec/18
Russia 7.75 Dec/18
South Africa 6.75 Dec/18
Brazil 6.50 Dec/18
India 6.50 Dec/18
Indonesia 6.00 Jan/19
China 4.35 Dec/18
Saudi Arabia 3.00 Dec/18
United States 2.50 Dec/18
Singapore 1.76 Dec/18
Canada 1.75 Jan/19
South Korea 1.75 Dec/18
Australia 1.50 Dec/18
United Kingdom 0.75 Dec/18
Euro Area 0.00 Dec/18
France 0.00 Dec/18
Germany 0.00 Dec/18
Italy 0.00 Dec/18
Netherlands 0.00 Dec/18
Spain 0.00 Dec/18
Japan -0.10 Dec/18
Switzerland -0.75 Dec/18


Related

Latest