The skyline in Sweden

Sweden Monetary Policy June 2022

Sweden: The Riksbank delivers largest rate hike in over two decades in June

At its meeting on 29 June, the Riksbank raised its key repo rate by 50 basis points, bringing it to 0.75% from 6 July. The decision, which was widely priced in by markets, marked the largest hike in over two decades. Meanwhile, the Riksbank confirmed it will slow the rate of asset purchasing more quickly than estimated in April, and is now set to acquire SEK 18.5 billion (around USD 1.8 billion) of bonds in H2—instead of the SEK 37.0 billion previously estimated.

The move was driven by the Riksbank’s commitment to rein in inflation. The Bank expects inflation to remain above 7.0% for the remainder of 2022, and the risk that it becomes entrenched in price setting and wage formation has increased since its last meeting.

With regard to forward guidance, the Riksbank’s tone turned more hawkish in its communiqué. It stated it had upwardly revised the policy rate forecast since April, and sees the repo rate at around 2.00% in early 2023—instead of April’s forecast of mid-2025. In line with this, the majority of our panelists see the repo rate ending this year at 1.50%.

The next monetary policy meeting is scheduled for 19 September.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest