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No change for Sweden's interest rate

The Swedish Central Bank (Riksbank) announced the decision today. Photo: Scanpix

The Swedish Central Bank has decided to not change the interest rate, leaving it at 1 percent. This is the interest rate at which the bank lends to other financial institutions, and is the main way that the Central Bank tries to control inflation, and is also called the "repo rate."

The current low rate of 1 percent was reached last December and means that it is cheap for banks to borrow money, which is intended to stimulate the economy. Two of the members of the banks board wanted the rate cut even lower.

The bank estimates that the rate will stay unchanged until 2015, when inflation is expected to be reach the bank's target figure of 2 percent.

The Central Bank, (Riksbanken), also slightly increased its unemployment forecast, predicting that 8.2 percent of Swedes will be out of work in 2013.

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