The central bank of Sweden left its key repo rate unchanged at -0.25 percent on September 5th 2019, as widely expected. Policymakers said that there are still major risks that may affect economic developments. The Committee added that the forecasts consider that sentiment has deteriorated but if the economic outlook and inflation prospects were to change, monetary policy will be adjusted. Interest Rate in Sweden averaged 3.03 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 0.00 in 12 months time. In the long-term, the Sweden Interest Rate is projected to trend around 0.75 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
2019-02-13 08:30 AM Riksbank Rate Decision -0.25% -0.25% -0.25% -0.25%
2019-04-25 07:30 AM Riksbank Rate Decision -0.25% -0.25% -0.25% -0.25%
2019-07-03 07:30 AM Riksbank Rate Decision -0.25% -0.25% -0.25% -0.25%
2019-09-05 07:30 AM Riksbank Rate Decision -0.25% -0.25% -0.25% -0.25%
2019-10-24 07:30 AM Riksbank Rate Decision -0.25% -0.25%
2019-12-19 08:30 AM Riksbank Rate Decision -0.25%



Sweden Holds Key Rate at -0.25%

The central bank of Sweden left its key repo rate unchanged at -0.25 percent on September 5th 2019, as widely expected. Policymakers noted that the economy has entered to a calmer phase and inflation is close to the target of 2 percent. The Committee said that there are still major risks that may affect economic developments. Policymakers added the interest rate is expected to be raised towards the end of the year or at the beginning of next year but at a slower pace than in the previous forecast due to worsened sentiment and low interest rates abroad.

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

For some time, the Riksbank has held the view that economic activity in Sweden would peak in 2018 and thereafter slow down. Compared with the forecast in the Monetary Policy Report in July, GDP growth is expected to be a little lower and the slowdown on the labour market seems to be taking place slightly faster than previously assessed. However, economic activity is still strong. Since the beginning of 2017, inflation has been close to the target of 2 per cent and the latest inflation outcomes have, if anything, been slightly higher than expected.

The fact that developments have largely been in line with the Riksbank’s forecast argues in favour of keeping, at present, to the previously communicated direction of monetary policy over the next six months. In line with the forecast in July, the repo rate is therefore being held unchanged at −0.25 per cent and, as before, the forecast indicates that the interest rate will be raised towards the end of the year or at the start of next year. However, market rates have fallen substantially and global interest rates are expected to remain low for a longer period of time. Together with the worsened sentiment, this underlines the importance of proceeding cautiously with monetary policy. The economic prospects are based on the repo rate being raised at a slower rate in the period ahead than in the previous forecast. In accordance with the decision from April 2019, the Riksbank will purchase government bonds for a nominal total amount of SEK 45 billion, with effect from July 2019 to December 2020. The low level of interest rates will continue to give support to the economic outlook and inflation.

There are still major risks that may affect economic developments. The forecasts consider that sentiment has deteriorated but assume that there will not be any further significant downturns in confidence among households and companies abroad and in Sweden. If the economic outlook and inflation prospects were to change, monetary policy will be adjusted.

Swedish households are highly indebted and therefore sensitive to changes in economic conditions, such as rising interest rates or higher unemployment. In order to reduce the risks linked to household indebtedness and address the structural problems on the Swedish housing market, measures within housing and tax policy and appropriate macroprudential policy are required.


Sveriges Riksbank | Stefanie Moya | stefanie.moya@tradingeconomics.com
9/5/2019 7:43:41 AM



Sweden Money Last Previous Highest Lowest Unit
Interest Rate -0.25 -0.25 8.91 -0.50 percent [+]
Interbank Rate -0.06 -0.06 13.13 -0.65 percent [+]
Money Supply M0 61849.00 61363.00 100763.00 53430.00 SEK Million [+]
Money Supply M3 3644738.00 3621232.00 3644738.00 987445.00 SEK Million [+]
Banks Balance Sheet 10028783.00 9795788.00 13664616.00 1784742.00 SEK Million [+]
Foreign Exchange Reserves 536943.00 535526.00 573065.00 34098.00 SEK Million [+]
Loans to Private Sector 1456743.00 1459542.00 1465091.00 344995.00 SEK Million [+]
Deposit Interest Rate -1.00 -1.00 8.00 -1.25 percent [+]
Lending Rate 0.50 0.50 9.50 0.25 percent [+]
Loan Growth 4.90 4.90 23.50 -3.30 percent [+]
Money Supply M1 3052306.00 3053249.00 3053249.00 627592.00 SEK Million [+]
Money Supply M2 3509682.00 3507874.00 3509682.00 840564.00 SEK Million [+]
Private Debt to GDP 279.70 274.50 279.70 180.70 percent [+]
Central Bank Balance Sheet 912237.00 908711.00 969911.00 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 September of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
-0.25 -0.25 8.91 -0.50 1994 - 2019 percent Daily




Country Last Previous
Argentina 82.79 Sep/19
Turkey 16.50 Sep/19
Mexico 8.00 Aug/19
Russia 7.00 Sep/19
South Africa 6.50 Sep/19
Brazil 5.50 Sep/19
India 5.40 Aug/19
Indonesia 5.25 Sep/19
China 4.20 Sep/19
Saudi Arabia 2.50 Sep/19
United States 2.00 Sep/19
Canada 1.75 Sep/19
Singapore 1.74 Aug/19
South Korea 1.50 Aug/19
Australia 1.00 Sep/19
United Kingdom 0.75 Sep/19
Euro Area 0.00 Sep/19
France 0.00 Sep/19
Germany 0.00 Sep/19
Italy 0.00 Sep/19
Netherlands 0.00 Sep/19
Spain 0.00 Sep/19
Japan -0.10 Sep/19
Switzerland -0.75 Sep/19


Related

Latest