Economic commentaries: Real interest rates in Sweden by Björn Lagerwall

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In daily news reporting, the term interest rate almost always refers to the nominal interest rate. However, the real interest rate is more relevant to consumption and investment decisions. This economic commentary aims to describe the real interest rate concept and illustrate developments in Sweden in recent years. The real repo rate is also illustrated, both the outcome and the Riksbank’s forecast. In conclusion, the historical development of short-term real interest rates in Sweden is discussed.

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