Sweden's central bank, the Riksbank, has lowered the interest rate on its complementary liquidity facility. 30 percentage points above the policy rate. The changes take effect on April 8, 2026.
Additionally, the Riksbank is removing the limit on how large a share of covered bonds banks can use as collateral for loans from the central bank. These adjustments are part of the Riksbank's long-term work to facilitate banks' adaptation to an environment with less excess liquidity. In recent years, the Riksbank's large holdings of securities have resulted in high liquidity in the banking system.
As the Riksbank reduces its holdings of Swedish securities, the amount of liquidity in the banking system decreases, which will place greater demands on banks to actively borrow from and lend to other banks. The Riksbank's lending facilities exist for banks to use them, for example, if they find it harder to obtain liquidity on certain days and short-term market rates rise above the Riksbank's lending rates. The changed interest rate premium lowers the threshold for banks to use the complementary liquidity facility when needed, aiming to create conditions for well-functioning liquidity management among banks so that money market rates can stay close to the policy rate.