Will Sweden's central bank cut interest rates today?
Sweden's central bank, the Riksbank, is set to make a widely awaited announcement on the country's main interest rate on Wednesday morning.
Many are hoping that it will cut the so-called policy rate for the first time in eight years, but it's possible they will postpone the cut another month.
The policy rate currently stands at 4.0 percent, the highest interest rate seen in Sweden since 2008.
This is a crucial announcement, as the policy rate is the bank's main monetary policy tool. It decides which rates Swedish banks can deposit in and borrow money from the Riksbank, which in turn affects the banks' own interest rates on savings, loans and mortgages.
KEY HACKS:
If bank interest rates are high, it's expensive to borrow money, which means people spend less and as a result inflation drops.
But now that inflation is on its way down, Riksbank chiefs themselves have said that they think it's likely that they will cut the policy rate in either May or June, and several economists predict that the cut is going to come sooner rather than later, which would mean today.
This won't immediately lower the cost of your mortgage, but it's likely to have a knock-on effect.
The Local will cover the interest rate announcement when it comes at 9.30am.
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Many are hoping that it will cut the so-called policy rate for the first time in eight years, but it's possible they will postpone the cut another month.
The policy rate currently stands at 4.0 percent, the highest interest rate seen in Sweden since 2008.
This is a crucial announcement, as the policy rate is the bank's main monetary policy tool. It decides which rates Swedish banks can deposit in and borrow money from the Riksbank, which in turn affects the banks' own interest rates on savings, loans and mortgages.
KEY HACKS:
If bank interest rates are high, it's expensive to borrow money, which means people spend less and as a result inflation drops.
But now that inflation is on its way down, Riksbank chiefs themselves have said that they think it's likely that they will cut the policy rate in either May or June, and several economists predict that the cut is going to come sooner rather than later, which would mean today.
This won't immediately lower the cost of your mortgage, but it's likely to have a knock-on effect.
The Local will cover the interest rate announcement when it comes at 9.30am.
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