Riksbank head Stefan Ingves presents the decision to leave the repo rate unchanged, Photo: Maja Suslin/TT
Central Bank forecast

Bright economic forecast for 2014

Sweden's central bank, or Riksbank, delivered another optimistic economic forecast on Thursday, leaving its key interest rate unchanged at 0.75 percent. It said in a statement that the repo rate needs to remain at this level until inflation picks up and the recovery is "on firmer ground".

The Riksbank said that after a year of weak growth, the prospects for the Swedish economy are now good with an improving labour market.

"This was in line with expectations and therefore there will be small movements in the market," says Annika Winsth, chief economist at Nordea to news agency TT.

"They have made very small adjustments, a tenth here and there. I think they want to send out the the image that not so much has happened since last time. But we still believe in a rate hike in October, we believe that the Riksbank is a bit too optimistic about economic growth," Annika Winsth tells TT. 

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