The central bank of Sweden left its key repo rate steady at -0.25 percent on April 25th 2019, in line with market expectations. Policymakers said the strong economic activity in Sweden indicates that inflation will remain close to 2 percent in the coming years but inflationary pressures are slightly weaker than expected. Also, the central bank delayed the next rate hike to the end of the year or to the beginning of next year and added rate rises thereafter are expected at a slower pace. In February, policymakers projected to raise rates in the second half of 2019. Interest Rate in Sweden averaged 3.06 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 1.00 percent in 2020, according to our econometric models.