Riksbank foresees lower inflation rate for next 2 years

The central bank of Sweden left its benchmark repo rate unchanged at current level of -0.35% and retain the current bond buying program at its today's meeting.

The inflation rate in the economy is expected to come down; therefore, the Bank revised down its inflation rate for next two years.

"The CPIF-inflation forecast was revised down for the next-coming 12 months. CPIF-inflation is now forecast to average 1.7 % in 2016 (1.8% in October) and 2.2% in 2017 (2.1% in October). Other macro projections were revised in line with expectations. GDP-growth is now seen at 3.6% in 2016 (3.0% in October) and 2.9% in 2017 (2.7% in October)", notes Nordea Bank.