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Sweden's Central Bank Raises Rate Second Time Since July To 0.75%

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Largest Nordic economy raise rate two times within 3 months

This should put BoE & EU Central Bank under considerable pressure to take action

Lets see what excuse they come up with for their in action

Sweden’s central bank raised its benchmark lending rate for a second time since July as policy makers try to steer the largest Nordic economy through the European Union’s biggest rebound.

The world’s oldest central bank raised the repo rate by a quarter of a percentage point to 0.75 percent, it said today on its website. The decision was expected by 16 of the 21 economists surveyed by Bloomberg. Five had predicted no change.

“The Swedish economy is continuing to show strong growth,” the bank said in the statement. “Inflationary pressures are currently low, but are expected to increase as economic activity strengthens. The repo rate needs to be raised gradually towards more normal levels to attain the inflation target of 2 percent and create the right conditions for stable growth in the real economy.”

Sweden’s $418 billion economy is poised to grow 4.5 percent this year, the government estimates, as an export- and investment-led recovery recoups most of last year’s 5.1 percent contraction. The Riksbank is moving ahead with tightening plans even as the outlook for other parts of Europe and the U.S. grows less certain and as Sweden’s inflationary pressure remains subdued. The bank said the decision to raise rates was in part driven by concern Sweden’s housing market may overheat.

http://www.bloomberg.com/news/2010-09-02/sweden-increases-benchmark-interest-rate-to-0-75-as-recovery-gathers-pace.html

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And the inflation rate in Sweden is what?

In July 2010, CPI inflation (measured as the annual change in the consumer price index) stood at 1.1 per cent (0.9 per cent in June 2010).

The annual percentage change in the CPIF (the CPI with a fixed interest rate, which is not directly affected by changes in mortgage rates) was 1.7 per cent in July 2010 (1.9 per cent in June 2010).

The inflation is calculated monthly by Statistics Sweden.

Riksbank target: 2 per cent

The Riksbank's target is to maintain inflation at a rate of 2 per cent when measured by CPI.

Source: http://www.riksbank.se/templates/Page.aspx?id=12953

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Swedish central bank holds policy, primes guns for December action

 

STOCKHOLM Sweden's central bank kept ultra-low rates and its bond purchase programme unchanged on Thursday, but said a recent slowdown in inflation meant the chance of a rate cut had risen and it was ready to expand quantitative easing at its next meeting in December.

 

I'm sure there's another Sweden thread but I can't find it!

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Whoah yeah didn't they raise them then it all went pear shaped and they dropped them to negative. That worked.

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I love these old threads.  At first, I thought "woah, what's happened to Sweden that it's IR would now be 0.75% when it was negative (it's currently -0.5%)....then I saw the date of the first post (over 6 years old).

Can anyone name a country in the EU whose economy isn't utterly trashed?

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11 hours ago, Si1 said:

Whoah yeah didn't they raise them then it all went pear shaped and they dropped them to negative. That worked.

Didnt we lower rates and the rich got richer and the poor get f**ked.

 

That worked.

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5 hours ago, canbuywontbuy said:

I love these old threads.  At first, I thought "woah, what's happened to Sweden that it's IR would now be 0.75% when it was negative (it's currently -0.5%)....then I saw the date of the first post (over 6 years old).

Can anyone name a country in the EU whose economy isn't utterly trashed?

Lichtenstein, Monaco, Luxembourg?

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  • 259 Brexit, House prices and Summer 2020

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