The central bank of Sweden left its benchmark interest rate at -0.5 percent on October 24th 2018, in line with market expectations, saying the economic activity in Sweden is strong and inflation remains close to the target of 2 percent. However, monetary policy needs to continue to be expansionary for inflation to remain within the target. The central bank added that the repo rate will be raised by 25bps either in December or February. Interest Rate in Sweden averaged 3.14 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 Leaves Monetary Policy Unchanged


The central bank of Sweden left its benchmark interest rate at -0.5 percent on October 24th 2018, in line with market expectations, saying the economic activity in Sweden is strong and inflation remains close to the target of 2 percent. However, monetary policy needs to continue to be expansionary for inflation to remain within the target. The central bank added that the repo rate will be raised by 25bps either in December or February.

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

Global economic developments continue to be positive and in line with the Riksbank's forecasts, even though, for example, developments in Italy and the escalated trade conflict between the United States and China mean that uncertainty over the prospects for the global economy has increased. In the wake of the stronger economic activity, inflationary pressures are expected to continue rising and monetary policy abroad to move in a less expansionary direction.

In Sweden, too, economic developments have been largely as expected and economic activity has been good for a long period of time. The labour market situation is expected to remain strong, even if GDP growth slows down going forward. Inflation increased to 2.5 percent in September, partly as a result of rapidly rising energy prices. Different measures of underlying inflation are lower and inflationary pressures are still assessed to be moderate. However, there are signs that inflationary pressures are rising and the conditions are good for inflation to remain close to the target of 2 percent in the coming years.

The overall picture of the economic outlook and inflation prospects remains largely unchanged since the September Monetary Policy Report. Consequently, in line with the previous forecast, the Executive Board has decided to hold the repo rate unchanged at -0.50 percent. If the economy develops in a way that continues to support the prospects for inflation, the Executive Board assesses that it will soon be appropriate to start raising the repo rate at a slow pace. The forecast for the repo rate is unchanged since the monetary policy meeting in September and indicates that the repo rate will be raised by 0.25 percentage points either in December or February. Reinvestments of principal payments and coupon payments 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.


Riksbank | Gabriela Costa | gabriela.costa@tradingeconomics.com
10/24/2018 7:51:16 AM



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 Monetary Policy Report
2018-12-20 08:30 AM Riksbank Rate Decision -0.5%


Sweden Money Last Previous Highest Lowest Unit
Interest Rate -0.50 -0.50 8.91 -0.50 percent [+]
Interbank Rate -0.47 -0.47 13.13 -0.65 percent [+]
Money Supply M0 57430.00 57414.00 100763.00 53430.00 SEK Million [+]
Money Supply M3 3401938.00 3366103.00 3405637.00 987445.00 SEK Million [+]
Banks Balance Sheet 13141940.00 13630150.00 13664616.00 1784742.00 SEK Million [+]
Foreign Exchange Reserves 541475.00 542476.00 551350.00 34098.00 SEK Million [+]
Loans to Private Sector 1409842.00 1412637.00 1412637.00 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 5.90 6.10 23.50 -3.30 percent [+]
Money Supply M1 2866274.00 2820619.00 2866274.00 627592.00 SEK Million [+]
Money Supply M2 3303322.00 3267031.00 3303322.00 840564.00 SEK Million [+]
Private Debt to GDP 271.50 267.30 274.60 181.00 percent [+]
Central Bank Balance Sheet 936179.00 931398.00 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 November of 2018.

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




Country Last
Argentina 63.29 Nov/18
Turkey 24.00 Oct/18
Mexico 7.75 Oct/18
Russia 7.50 Oct/18
Brazil 6.50 Oct/18
India 6.50 Oct/18
South Africa 6.50 Oct/18
Indonesia 6.00 Nov/18
China 4.35 Oct/18
Saudi Arabia 2.75 Oct/18
United States 2.25 Nov/18
Canada 1.75 Oct/18
Australia 1.50 Nov/18
South Korea 1.50 Oct/18
Singapore 1.45 Oct/18
United Kingdom 0.75 Nov/18
Euro Area 0.00 Oct/18
France 0.00 Oct/18
Germany 0.00 Oct/18
Italy 0.00 Oct/18
Netherlands 0.00 Oct/18
Spain 0.00 Oct/18
Japan -0.10 Oct/18
Switzerland -0.75 Oct/18


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