The reference rate (pursuant to the Interest Act)

What is the reference rate?

The reference rate is an interest rate that the Riksbank must set in accordance with Section 9 of the Interest Act (1975:635). The Interest Act contains provisions on payment terms in certain cases and on interest. This reference rate is used as a basis for calculating certain interest rates under the Interest Act. The reference rate serves no monetary policy purpose.

When and how often is the reference rate published?

The reference rate is determined by a biannual decision by the Riksbank, taken on the last weekday before the start of a new calendar half-year. Decisions on the reference rate are thus published on the last working day before 1 January and on the last working day before 1 July. The reference rate applies for the coming six months, which is to say January to June and July to December respectively.

Where is the reference rate published?

The reference rate is published on the Riksbank’s website and is also announced in the Swedish Code of Statutes.

How is the reference rate calculated?

The reference rate corresponds to the interest rate applied by the Riksbank at the auction of Riksbank Certificates held immediately prior to the calendar half-year during which the interest rate is to apply. The interest rate used for the Riksbank Certificates is the Riksbank’s policy rate applicable at the time of the auction. The level of the reference rate is thus controlled by the policy rate. However, the reference rate must always be an even whole or half percentage point and shall be rounded up if it is not.

More information on how the reference rate is used to calculate certain interest rates can be found in the Interest Act. The reference rate is also used in other statutes and contexts. If you have any questions about the reference rate in these cases, contact the responsible authority or organisation for more information.

The Riksbank’s reference rate pursuant to the Interest Act has existed since 1 July 2002, when it replaced what was then known as the discount rate.

Reference rate from July 2002 (XLSX)