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Interest Rates Remain Record Low

Published fredag 2 december 2005 kl 11.56

The Swedish central bank, the Riksbank, has left its key repo rate unchanged at an historic low 1.5 percent.

The widely-expected announcement came after the bank’s regular meeting Thursday. Most analysts expect the Riksbank to raise rates in February next year by 25 basis points. Some critics blame the current low value of the Swedish krona on recent drops in interest rates.

The same day the European Central Bank raised its key rate by a quarter point to 2.25 percent, a move that was immediately followed by Denmark, which like Sweden remains outside the euro zone.

Sweden’s economy has been growing since a sluggish start at the beginning of the year. However, despite strong signs that domestic demand is picking up, consumer and business confidence remain weak. On Tuesday the Organization for Economic Cooperation and Development forecast strong growth and a corresponding decrease in unemployment here.

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