Interest rates

What will happen to interest rates?

78 percent of CFO’s expect higher SEK interest rates over the next 12 months. This is clearly in excess of their euro zone counterparts, of whom only 56 percent expect higher EUR rates. Meanwhile only 32 percent of CFOs surveyed in other Nordic countries expect higher key interest rates.

Appropriate strategies if rates rise

If key interest rates rise, half of the Swedish companies would stick to their current strategy, since they expect only a small impact on their business. This is roughly in line with the euro zone as well as CFOs in the other Nordic countries, although a clear majority of Finnish CFOs (79 percent) expect little impact. This may, however, be explained by smaller companies taking part in the Finnish survey.

The other half of Swedish CFOs are divided on what strategy to apply, but the most common is to reduce debt or re-evaluate investment plans. Thus the positive view expressed regarding investments throughout the survey could encounter at least a minor headwind, if interest rates begin to increase.

A slightly lower proportion of CFOs in the euro zone and other Nordic countries would re-evaluate their investment plans if rates rise – indicating a somewhat smaller rate sensitivity than in the Swedish economy.

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