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.

Sweden Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
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% -0.25%
2019-07-03 07:30 AM Riksbank Rate Decision -0.25% -0.25%
2019-09-05 07:30 AM Riksbank Rate Decision -0.25%
2019-10-24 07:30 AM Riksbank Rate Decision -0.25%



Sweden Holds Key Rate at -0.25%

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.

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

The good global economic activity is continuing and as expected has entered a phase with lower growth rates. However, inflation abroad has been unexpectedly weak, especially in the euro area. Several central banks have communicated a more expansionary monetary policy. There is still considerable uncertainty over international developments. 

Activity in the Swedish economy is high and growth was unexpectedly rapid in the fourth quarter. The high level of demand in recent years has led to strong developments on the labour market with a historically high employment rate. Economic prospects continue to look good despite the economy entering a phase of lower growth than previously.

Inflation and inflation expectations have been close to 2 per cent for about two years. Although inflation is expected to temporarily fall back this year, due to the assessment that energy prices will not increase as quickly as last year, the strong economic activity in Sweden and rising inflationary pressures abroad indicate that inflation will continue to remain close to the target going forward. However, outcomes in recent months suggest that inflationary pressures are slightly weaker than expected and, overall, inflation is now expected to be somewhat lower over the next few years compared with the previous forecast.

Unexpectedly low inflation both in Sweden and abroad, low interest rates abroad and uncertainty over global developments emphasise that there is a need to proceed with caution in monetary policy. The Executive Board has decided to hold the repo rate unchanged at –0.25 per cent and assesses that the rate will remain at this level for a somewhat longer period of time than was forecast in February. The repo rate is expected to be raised again towards the end of the year or at the beginning of next year. Increases in the repo rate thereafter are expected to occur at a somewhat slower pace, compared with the assessment in February. 

The Executive Board has also decided that the Riksbank will purchase government bonds for a nominal value of SEK 45 billion from July 2019 to December 2020. This corresponds to around half of the principal payments and coupons that the Riksbank will receive from the bond portfolio during this period. The purchases will take place in order to maintain an appropriate level of holdings and the Riksbank’s presence in the market.


Sveriges Riksbank | Agna Gabriel | agna.gabriel@tradingeconomics.com
4/25/2019 8:39:16 AM



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 58183.00 57588.00 100763.00 53430.00 SEK Million [+]
Money Supply M3 3530582.00 3490938.00 3530582.00 987445.00 SEK Million [+]
Banks Balance Sheet 9896466.00 10052053.00 13664616.00 1784742.00 SEK Million [+]
Foreign Exchange Reserves 568599.00 573065.00 573065.00 34098.00 SEK Million [+]
Loans to Private Sector 1433421.00 1433446.00 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 5.00 5.20 23.50 -3.30 percent [+]
Money Supply M1 2969188.00 2921893.00 2969188.00 627592.00 SEK Million [+]
Money Supply M2 3420052.00 3383263.00 3420052.00 840564.00 SEK Million [+]
Private Debt to GDP 271.50 267.30 274.60 181.00 percent [+]
Central Bank Balance Sheet 939409.00 940779.00 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 May 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 71.57 May/19
Turkey 24.00 Apr/19
Mexico 8.25 May/19
Russia 7.75 Apr/19
South Africa 6.75 Apr/19
Brazil 6.50 May/19
India 6.00 Apr/19
Indonesia 6.00 May/19
China 4.35 Apr/19
Saudi Arabia 3.00 Apr/19
United States 2.50 May/19
Singapore 2.24 Mar/19
Canada 1.75 Apr/19
South Korea 1.75 Apr/19
Australia 1.50 May/19
United Kingdom 0.75 May/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 Apr/19
Switzerland -0.75 Apr/19


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