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INTEREST RATE

Sweden keeps record-low interest rate

Sweden's record-low interest rate of -0.50 percent has been extended once again, the country's central bank announced on Wednesday.

Published: 14 February 2018 15:34 CET

Sweden keeps record-low interest rate

Sweden's central bank first took the decision to slash the interest rate below zero two years ago. Photo: Pontus Lundahl/TT

While economic activity in Sweden remains strong, the Riksbank said on Wednesday that it would keep the repo rate at -0.50 percent.

It noted that while inflation was close to the target of 2 percent, the forecast for inflation in 2018 has been revised down slightly.

“Monetary policy needs to remain expansionary for inflation to stabilize close to the target going forward,” it said in a statement.

“The forecast for the repo rate is unchanged since December and indicates that slow repo rate rises are set to be initiated during the second half of this year.”

The central bank said that it was important that economic activity continued to be strong and that the Swedish krona did not strengthen too quickly.

The Riksbank took the landmark decision to slash the key interest rate, the repo, below zero in February 2015, hoping that the strategy would boost inflation to raise the price of everyday goods and services which had been stagnant in recent years, and therefore improve the Nordic nation's economic prospects.

In its long-term forecast, the Riksbank predicted that the repo rate would stay at -0.50 percent until the first quarter of 2019, when it would rise to -0.15. By the first quarter of 2020, the rate is forecast to increase to 0.36.

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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