At its 6 September monetary policy meeting, the Central Bank (Riksbank) cut its repo rate by 25 basis points to 1.25%, in a move that surprised market analysts, who had expected rate to be left unchanged. According to the Bank, the decision aims to prevent inflation from being too low in the medium term. Riksbank stated that Sweden's GDP growth has been "unexpectedly strong so far this year", supported by solid growth in exports of services. However, the Central Bank warned that negative developments in the Euro area would inevitably dampen demand for Swedish exports, thus weakening domestic economic activity going forward. Regarding price developments, Riksbank acknowledged that "inflationary pressures in the Swedish economy were low", which partially explains the need for expansionary monetary policy. In addition, the Bank pointed to the rapid appreciation of the krona, which further reduced inflationary pressures. Indeed, the Bank expects inflation to remain below its target of 2.0% in both 2012 and 2013.
Sweden Monetary Policy
Riksbank lowers repo rate to 1.25%
September 6, 2012
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Sweden Economic News
October 11, 2016
In September, consumer prices inched up 0.2% from the previous month, contrasting August’s 0.1% drop and falling short of market expectations of a 0.5% increase.
October 5, 2016
Industrial production dropped 4.1% from the previous month in seasonally-adjusted terms in August.
September 20, 2016
The Swedish economy lost steam in the first half of this year in comparison with 2015, although it remained amongst the best performing Nordic economies, which are suffering as the stagnation in global demand puts the brakes on their key exports sector.
September 13, 2016
In August, consumer prices inched down 0.1% over the previous month, contrasting both July’s 0.1% increase and market expectations of a flat reading.
September 7, 2016
At its 6 September policy meeting, the Riksbank decided to hold its repo rate at a record low of minus 0.50%, as expected by the market, and postponed the future interest rate hikes it had planned, which are now set for the second half of 2017.