Riksbank Board were split on their decision. They do however expect rates to remain at this low level until at least late 2010 after which time they will be raised towards more normal levels.
They see Swedish CPI at +0.8 % in 2010 revised from their previous forecast of +0.9 % and GDP at 2.7 % from a previous forecast of +2.5 %.
The Riksbank also add that the recovery from the severe recession is continuing and that the labour market does not appear to be as weak as was forecast in October, wages will rise slowly due to the labour market situation.
The Kroner following the announcement trading at 10.44 against the Euro from 10.41 prior to the news.