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: 14.09.2026 Expectation: 1000 pips
Invest in AUDCAD on RBA taking monetary pause
Yesterday at 12:07 PM 26
Period: 14.09.2026 Expectation: 3500 pips
GBPUSD sell-off targets 1,31500
Yesterday at 06:58 AM 28
Period: 13.09.2026 Expectation: 150 pips
Selling ETHUSD down to $1,750
13 August 2026 38
Gold buy
Period: 30.09.2026 Expectation: 46000 pips
Going long on gold amid slowdown in US inflation
13 August 2026 66
Period: 31.10.2026 Expectation: 1100 pips
Invest in EURUSD up to 1.16400
13 August 2026 25
Period: 13.09.2026 Expectation: 250 pips
Buying S&P 500 with 8,000 target
13 August 2026 54
Go to forecasts