STOCKHOLM, Sept 20 (Reuters) - Sweden's centre-right government forecast the country's key repo rate would rise to 0.5 percent by end-2010 as it unveiled on Sunday the main points of a growth-oriented budget aimed at securing re-election next year.
The rate prediction is higher than a government forecast made in April for 0.25 percent at end-2010. It also compares with a central bank forecast for rates to stay where they are for the coming year.
'The financial policy should stay expansive, but sustainability in the long run in public finances will be secured,' the government said in a budget document provided to journalists ahead of a news conference.
The government kept its forecasts for gross domestic product from 2009 to 2011 unchanged, predicting a 5.2 percent contraction this year, according to the budget document.
But the government nudged up its forecast for 2012 growth to 3.8 percent from a previous 3.7 percent estimate.
The coalition government is due to present its budget bill to parliament on Monday. Keywords: SWEDEN BUDGET/ (Stockholm Newsroom, tel: +46-8-700 1017, e-mail: stockholm.newsroom@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The rate prediction is higher than a government forecast made in April for 0.25 percent at end-2010. It also compares with a central bank forecast for rates to stay where they are for the coming year.
'The financial policy should stay expansive, but sustainability in the long run in public finances will be secured,' the government said in a budget document provided to journalists ahead of a news conference.
The government kept its forecasts for gross domestic product from 2009 to 2011 unchanged, predicting a 5.2 percent contraction this year, according to the budget document.
But the government nudged up its forecast for 2012 growth to 3.8 percent from a previous 3.7 percent estimate.
The coalition government is due to present its budget bill to parliament on Monday. Keywords: SWEDEN BUDGET/ (Stockholm Newsroom, tel: +46-8-700 1017, e-mail: stockholm.newsroom@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
