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ECONOMY

Sweden keeps interest rate the same: Riksbank

Sweden's central bank announced on Wednesday that the current repo rate of one percent will remain unchanged, predicting a gradual increase in the second half of next year.

Sweden keeps interest rate the same: Riksbank

The news came as no surprise, as Sweden’s central bank had predicted in February that the rate would remain stable for the year.

On Wednesday, it predicted that the rate would slowly begin to rise throughout the second half of 2014.

“The Swedish economy is on the way to a recovery,” the Riksbank wrote in a statement, adding that inflation is expected to be low for a while longer.

“Economic developments in Sweden and abroad have been largely in line with the Riksbank’s most recent forecast in April. The repo rate needs to remain low to support the economy and enable inflation to rise to the target of two percent.”

“The weak demand in the euro area has led to a fall in exports and investment in Sweden. At the same time, households’ finances are relatively strong. Low interest rates and rising employment have contributed to good growth in incomes preparing the ground for continued steady growth in consumption,” it added.

The Riksbank predicted that with an improving global economy, demand for Swedish exports will increase, resulting in a growth in Gross Domestic Product at the end of the year. Next year, however, the bank predicted that the labour market and unemployment will fall again.

The Riskbank’s Deputy Governors Karolina Ekholm and Martin Flodén both entered reservations about maintaining the rate, each advocating a drop to 0.75 percent.

TT/The Local/og

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MONEY

How to avoid falling victim to tax scams in Sweden

Sweden's tax agency, Skatteverket, warns of an increase in scams when it's time for Swedish tax-payers to declare their taxes.

How to avoid falling victim to tax scams in Sweden

Anyone who earned more than 22,208 kronor last year received their tax returns digitally last week, marking the start of tax season.

That also means an expected peak in tax-related scams, Skatteverket warns.

Most of the scams are so-called phishing scams, meaning attempts to steal the victims’ personal information. Fraudsters may for example email a person, pretending to represent Skatteverket, and ask them for, among other things, their banking details.

“We’re seeing these in all channels. They use fake emails, SMS, letters and in some cases even phone calls. It is particularly common in tax declaration times – just when we’re about to send out the tax returns, the e-service opens and it’s possible to declare – but above all when it’s time for tax rebates,” Jan Janowski, a Skatteverket expert, told Swedish news agency TT.

A scam email might for example state that you’re entitled to a tax rebate and that you should click a link to receive it. Don’t click any links, open any attachments or reply to the message. Skatteverket advises that you immediately delete the email or text message.

Another common scam is that you receive a text message claiming to be from Skatteverket, telling you that you owe them money and you need to log in to calculate the amount. The website you’re urged to log in via does not belong to Skatteverket. Don’t click the link.

The agency stresses that it never asks people for their banking details. The exception is that you may be asked for your bank account information if you log into Skatteverket’s website to declare your taxes, but that always first requires you to log into the site.

To receive your tax rebate, you need to inform Skatteverket of your bank account number. You do this not by clicking a link in an email or SMS, but by logging into their website using a digital ID, for example BankID, and submitting your details. Only do this on your own initiative. If someone calls you and asks you to log in with your BankID during the phone call, don’t do it. That’s another common scam.

Skatteverket will also never call you to ask for your bank account or credit card number.

It will be possible to declare your taxes from March 19th. You’ll receive any tax rebate you’re owed by mid-April or early June, depending on when you submit your tax return. These are the dates when fraudsters are likely to attempt the most scams.

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