"Economic activity in Sweden is continuing to strengthen, but there is considerable uncertainty over economic developments abroad and this has increased as a consequence of the result of the British referendum on the EU… The Executive Board of the Riksbank has therefore decided to hold the repo rate unchanged at —0.5 per cent and now assesses that there will be a longer delay until the repo rate begins to be raised," the press release reads.
According to the press release, the interest rate will not increase until the third quarter of 2017 and in the fourth quarter of 2016 it can even drop to —0.53 percent.
Interest rate backing to zero is expected to take place in the second half of 2018.
On June 23, the United Kingdom held a referendum to determine whether or not the country should leave the European Union. According to the final results, 51.9 percent of voters, or 17.4 million people, decided to support Brexit, while about 16.1 million opposed it.
The Brexit decision sent global financial markets into frenzy, triggering changes of the global oil prices, currency rates and global financial indicators.
