• Sweden edition
 
Riksbank leaves repo rate unchanged

Riksbank leaves repo rate unchanged

Published: 07 Sep 2011 10:01 GMT+02:00
Updated: 07 Sep 2011 10:01 GMT+02:00

“The concern over public finances abroad has increased and global growth prospects have deteriorated. The slowdown in the Swedish economy is thus expected to be more pronounced than was forecast in July,” the Riksbank wrote in a statement.

The Riksbank is counting on a repo rate of 2.4 percent on average next year and 2.9 percent in 2013. Before, the prognosis had been 2.8 percent for 2012 and 3.4 percent for 2013.

The GDP growth forecast for 2012 decreased from an earlier 2.2 percent to 1.7 percent. For 2013 the Riksbank has lowered the growth expectations from 2.5 percent to 2.4 percent.

Inflation is estimated to be 2.1 percent in 2012 compared to 2.7 percent. For 2013 it is lowered from 2.8 to 2.6 percent.

“A lower repo-rate path will gradually stabilise inflation around the target of 2 per cent and resource utilisation around a normal level,” the Riksbank wrote.

According to the statement, the board decided unanimously to hold the repo rate unchanged.

However, deputy governors Karolina Ekholm and Lars E.O. Svensson both entered reservations against the repo rate path in the Monetary Policy Update.

Annika Winsth, head economist at the Nordea bank, said the announcement was “very much in line with expectations”.

“They've decided not to raise the interest rate and they've also revised the interest rate path in line with our expectations,” she told the TT news agency.

She added, however, that the Riksbank's GDP growth forecast is likely too optimistic and that both growth estimates and the interest rate path will be adjusted downward in the future.

“On the margins, the Riksbank is signaling that there is a lower likelihood for an interest rate hike later this year,” said Olle Holmgren, and economist with the SEB bank.

He thinks that the news will get the market to react with lower market interest rates and a strengthening of the krona.

TT/Rebecca Martin (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

Today's headlines
Swedish police chase German ambulance
A German ambulance. File photo: TT

Swedish police chase German ambulance

Swedish police took up the chase after a German registered ambulance late Friday night after reports that it had been racing around the forests in Småland with its siren on and lights flashing. READ  

Interview
'The concept of race is a slippery slope': Ullenhag
Integration Minister Erik Ullenhag. Photo: Pontus Lundahl/TT

'The concept of race is a slippery slope': Ullenhag

Integration Minister Erik Ullenhag tells The Local why he plans to remove the term "race" from all Swedish law, how he responds to his critics, and why Sweden must steer clear of xenophobia. READ  

Sweden's tourism figures on the rise for 2014

Sweden's tourism figures on the rise for 2014

Tourism in Sweden is on the rise, with the first half of 2014 seeing a boom in visiting figures for both domestic and foreign tourists. READ  

Northern Dispatches
How I tackled northern Sweden's savage insects

How I tackled northern Sweden's savage insects

Ex-Londoner Paul Connolly has just survived a northern Sweden heat wave. But it wasn't the high temperatures that were the real problem, he recounts. READ  

What's On in Sweden - Pride Parade

What's On in Sweden - Pride Parade

Saturday marks the Stockholm Pride Parade, the biggest event of Pride Week (and the biggest Pride Parade in Scandinavia). Here's what to see and where to be, as well as plenty of other activities in Sweden's three biggest cities for the weekend. READ  

Railway fatalaties on the rise in Sweden
File photo: Carl Dougge/Flickr

Railway fatalaties on the rise in Sweden

Even though Sweden's Traffic Agency has drastic plans to reduce the number of people killed by trains in Sweden, a new report shows that figures are on the rise. READ  

Woman finds Ikea bags stuffed with 80 skeletons

Woman finds Ikea bags stuffed with 80 skeletons

UPDATED: A woman in southern Sweden is furious after stumbling upon scores of skulls and human bones inside Ikea bags in a church. The man who dug up the bones, however, says it's not as bad as it looks. READ  

Swedish Wikipedia jumps to second biggest

Swedish Wikipedia jumps to second biggest

There are now more Swedish Wikipedia entries than any other language in the world, besides English. And there's one Swede who's largely responsible. READ  

Assault with iron pipe 'no hate crime': police
The aftermath of the attack in Seved, Malmö on July 6th 2014. Drago Prvulovic / TT

Assault with iron pipe 'no hate crime': police

Police in southern Sweden have concluded that a man who was beaten with an iron pipe for hanging an Israeli flag in his window was not a victim of a hate crime. READ  

AstraZeneca hikes earnings outlook
Photo: Claus Gertsen/TT

AstraZeneca hikes earnings outlook

After fighting off a fierce takeover bid from Pfizer, Swedish-British drugmaker AstraZeneca raised its 2014 earnings outlook and posted rising second quarter sales on Thursday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
Stockholm demonstration against Israel
National
Stockholm Pride bars Sweden Democrats
National
Gender neutral pronoun 'hen' enters dictionary
Society
Top ten cafes in Stockholm
People-watching
Gallery
People-watching - Stockholm Pride
Blog updates

31 July

Calling a speedo a speedo (Blogweiser) »

"There are a lot of speedos on Europe’s beaches. Some European males are evidently more comfortable sporting small, stretchy suits on public beaches than I would be. I accept it may be nice to have swimwear that’s not long and cumbersome. A speedo is maybe also good for tanning. But strolling around town in a..." READ »

 

27 July

Approaching Stockholm (Around Sweden in a kayak) »

"I woke up in the comfort of my own little cabin on Eva and Rolf’s boat, it was 7:30am and I was feeling a bit groggy after a couple of beers with all the lovely locals the night before. The previous day had really taken its toll on my body and I was very stiff and..." READ »

 
 
 
Photo: Henrik Trygg/Imagebank Sweden
Society
Sweden worst in EU at getting foreigners jobs
Lifestyle
Stockholm Pride kicks off
Analysis
The top six ways the US and Sweden differ
National
Swedish youth suicides hit 25-year high
National
Politician reported for selling 'negro ball'
National
Police turn blind eye to Swedish 'slave trade'
Gallery
Stockholm Pride: Allsång på Skansen with Conchita Wurst
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
Gallery
People-watching, June 26th - 28th. Get inside Stockholm's hottest nightclubs
Gallery
Top ten Swedish taboos
Society
Seven-year-old Swede cycles to Berlin
Politics
'Gaza conflict needs help, not empty rhetoric'
Society
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
National
Swedish organic sales enjoy 'amazing' growth
Gallery
People-watching July 23
National
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Gallery
People-watching Båstad
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

721
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se