21 September 2022 | Other

Swedish interest rates rose by a full percentage point and they may be higher

As part of the fight against inflation, Sweden's central bank is raising interest rates. On Tuesday, they rose by a higher-than-expected full percentage point to 1.75%. The Swedish Central Bank has warned that interest rates will rise even more in the next six months.

In August, inflation reached 9%. This is the highest value in the last 30 years. The reason for this was a sharp increase in energy prices. Its effects have covered the economy and exceeded Riksbank's forecasts.

"When rates rise, it's obvious that interest costs for many households rise, but the cost of high inflation - sustained high inflation - actually rises even more," Governor Stefan Ingves told reporters.

Ingves added that raising rates now and in the future will help to reduce the risk of remaining at a high inflation level.

The inflation level at the moment in time is beyond the influence of the central bank. The desire of rate setters is that rising prices will not trigger higher wage demands, as the process of returning to the 2% inflation target level would become much more difficult in the long term.

Forecasts say Sweden's economy is heading for a sharp downturn, perhaps even a recession. But the rate increase will continue.

Company MarketCheese
Period: 31.08.2026 Expectation: 600 pips
Invest in Brent crude up to $88.60
Yesterday at 01:14 PM 20
Period: 24.08.2026 Expectation: 4000 pips
Silver is poised to rally again after taking breather
Yesterday at 10:37 AM 31
Period: 31.08.2026 Expectation: 1150 pips
Go long on EURUSD as Fed rate hike expectations in September fade
Yesterday at 10:34 AM 16
Gold buy
Period: 24.08.2026 Expectation: 105 pips
Buying gold with $4,500 in sight
Yesterday at 06:39 AM 32
Period: 24.08.2026 Expectation: 1076 pips
SPX is focusing on Fed minutes and retail earnings this week
Yesterday at 06:01 AM 25
Period: 14.09.2026 Expectation: 1000 pips
Invest in AUDCAD on RBA taking monetary pause
14 August 2026 53
Go to forecasts