Predicted Repo Rate Drop

Swedish finance minister Anders Borg says he expects the Bank of Sweden to sink the Repo rate in just over a year’s time.

Reuters report that Borg predicts a drop from 4.75 percent down to 3 percent with a potential rise of 0.25 percent during 2010.

His estimation is much lower than that of any of the other opinion reports.

He added that the miscalculation of the Consumer Price Index made by Statistics Sweden earlier in the year will cost the state up to 102 million US dollars in 2009.