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.

Sweden Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
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%
2019-02-13 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%
2019-07-03 07:30 AM Riksbank Rate Decision -0.25%
2019-09-05 07:30 AM Riksbank Rate Decision 0%



Sweden Leaves Rates Unchanged

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.

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

Growth abroad has slowed down, but economic activity will continue to be good over the next few years, with low unemployment and rising wage growth in many countries. There is still substantial uncertainty about the strength of the international economy.

Although indicators point to sentiment in the household and corporate sectors having dampened in Sweden, the picture of strong economic activity remains. Developments on the labour market have been slightly stronger than expected and unemployment is at its lowest level in a decade. Both inflation and inflation expectations have become established at around 2 percent. 

The strong economic activity and rising cost pressures both in Sweden and abroad mean that the conditions are good for inflation to remain close to the target in the coming years. This outlook has not changed to any great extent since December. 

Reinvestments of principal payments and coupons in the government bond portfolio will continue until further notice.

Several factors indicate that monetary policy needs to proceed with caution. As in December, the forecast for the repo rate indicates that the next increase will be during the second half of 2019, on condition that the economic outlook and inflation prospects are as expected. The Executive Board assesses that the repo rate needs to be raised at a slow pace even after that, roughly twice a year by 0.25 percentage points on each occasion, for inflation to remain close to 2 per cent. However, there is uncertainty over developments abroad and the strength of domestic demand. It is the economic outlook and inflation prospects that will determine future monetary policy.


Sveriges Riksbank | Joana Taborda | joana.taborda@tradingeconomics.com
2/13/2019 8:48:23 AM


News

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.
Published on 2018-12-20

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.
Published on 2018-10-24

Sweden Holds Interest Rate Steady at -0.5%
The central bank of Sweden left its benchmark interest rate at -0.5 percent on September 6th 2018, as expected, saying the economic activity in Sweden is strong and inflation is close to the 2 percent target. However, monetary policy needs to continue to be expansionary for inflation to remain close to target. Policymakers added that the repo rate will be raised by 25bps either in December or February.
Published on 2018-09-06

Sweden Holds Key Interest Rate at -0.5%
The central bank of Sweden held its benchmark interest rate at -0.5 percent on July 3rd, as widely expected, saying monetary policy needs to continue to be expansionary for inflation to remain close to target despite strong economic activity. Still, the central bank reiterated that slow repo rate rises will be initiated towards the end of the year.
Published on 2018-07-03



Sweden Money Last Previous Highest Lowest Unit
Interest Rate -0.25 -0.25 8.91 -0.50 percent [+]
Interbank Rate -0.03 -0.03 13.13 -0.65 percent [+]
Money Supply M0 57588.00 57372.00 100763.00 53430.00 SEK Million [+]
Money Supply M3 3490938.00 3495255.00 3495255.00 987445.00 SEK Million [+]
Banks Balance Sheet 10052053.00 9773052.00 13664616.00 1784742.00 SEK Million [+]
Foreign Exchange Reserves 573065.00 559999.00 573065.00 34098.00 SEK Million [+]
Loans to Private Sector 1433446.00 1406492.00 1433446.00 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 5.30 5.40 23.50 -3.30 percent [+]
Money Supply M1 2921893.00 2923948.00 2923948.00 627592.00 SEK Million [+]
Money Supply M2 3383263.00 3386768.00 3386768.00 840564.00 SEK Million [+]
Private Debt to GDP 271.50 267.30 274.60 181.00 percent [+]
Central Bank Balance Sheet 940779.00 969911.00 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 April 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 67.12 Apr/19
Turkey 24.00 Mar/19
Mexico 8.25 Mar/19
Russia 7.75 Mar/19
South Africa 6.75 Mar/19
Brazil 6.50 Mar/19
India 6.00 Apr/19
Indonesia 6.00 Mar/19
China 4.35 Mar/19
Saudi Arabia 3.00 Mar/19
United States 2.50 Mar/19
Singapore 2.24 Mar/19
Canada 1.75 Mar/19
South Korea 1.75 Apr/19
Australia 1.50 Apr/19
United Kingdom 0.75 Mar/19
Euro Area 0.00 Apr/19
France 0.00 Apr/19
Germany 0.00 Apr/19
Italy 0.00 Apr/19
Netherlands 0.00 Apr/19
Spain 0.00 Apr/19
Japan -0.10 Mar/19
Switzerland -0.75 Mar/19


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