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Sweden’s repo rate to stay at zero for three years, says new central bank forecast

Sweden's central bank said on Tuesday that the country's interest rate is forecast to remain at zero for another three years.

Published: 22 September 2020 12:08 CEST
Sweden's repo rate to stay at zero for three years, says new central bank forecast
The announcement is intended to aid Sweden in its post-coronavirus economic recovery. Photo: Pontus Lundahl/TT

The key interest rate, the repo rate, will remain unchanged at zero in order to help keep interest rates to both households and businesses low and to support Sweden's economic recovery.

While the central bank, the Riksbank, said it expected the rate to remain at zero for three years, it also noted that it could be cut if necessary.

“The Swedish economy seems to have left the acute crisis situation of the spring and started to recover slightly faster than expected. But it is still a long way back [to the pre-crisis situation], and the situation on the labour market is worrying, with high unemployment as a result of the sharp decline in economic activity in the spring,” said a statement from the central bank on Tuesday.

The bank took the landmark decision to slash the rate 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. Almost five years later, it was raised from -0.25 to zero in December 2019, following almost two years of inflation being close to its target of two percent.

In its statement on Tuesday, the bank said inflation had been higher than expected in recent months, but was still forecast to be low overall for 2020. Sweden was already heading towards an economic slowdown even before the coronavirus pandemic, and the crisis has affected the global economy with an impact on Sweden.

“In light of the severity of the crisis and the fact that demand will not be back at more normal levels any time soon, it is expected to take time before inflation is more permanently back close to the Riksbank's target of 2 per cent,” the statement said.

The new forecasts also included a predicted fall in GDP of 3.6 percent this year, which is less dramatic than the predicted drop of 4.5 percent in the previous forecast.

And growth in 2021 was expected to reach 3.7 percent, up slightly from the previous forecast of 3.6 percent.

You can read the full report from the Riksbank here.

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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.

Published: 12 March 2024 13:40 CET
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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