Swedish central bank seen cutting rates this week - poll

Sweden's central bank office is seen in Stockholm December 9, 2011. REUTERS/Ints Kalnins

STOCKHOLM (Reuters) - Sweden's central bank will cut its benchmark repo rate, already at record low levels, to -0.45 percent this week in another effort to push up inflation, a Reuters poll of analysts said.

After three years of mostly flat or falling prices the central bank's worries over deflation have not eased, despite slashing rates to ultra low levels and a 200 billion crown ($23.62 billion) bond purchase programme.

With underwhelming prices rises at the end of last year and the European Central Bank threatening easier policy ahead, the Riksbank may be forced to act again in order to get inflation moving towards its 2 percent target.

"The board of the Riksbank has doubts about whether inflation is rising and the latest figures were lower than they expected," said Torbjorn Isaksson, economist at Nordea.

"The ECB has opened the door wide for new action and the Riksbank has to get into line."

Ten of 18 analysts in the poll on Friday saw the Riksbank cutting rates by 10 basis points to -0.45 percent when it announces its decision on Feb. 11.

Two analysts saw a rate cut of 15 basis points to -0.50 percent while the remaining six analysts expected the repo rate to remain at -0.35 percent.

Inflation stalled at the end of last year and while the Riksbank left its benchmark rate unchanged at its last meeting, it said it was ready to act again if needed.

The ECB has raised the prospect of another rate cut in March and the Riksbank is worried the crown may strengthen, choking off any price pressure.

Governor Stefan Ingves put markets on notice at the end of December, warning the Riksbank would intervene in the currency market if the crown strengthened too quickly.

Since then, the crown has weakened and only four of 18 analysts in the poll expected the Riksbank to intervene in the coming three months.

(This story corrects time reference in headline, first paragraph)

(Reporting by Johan Sennero; Editing by Simon Johnson and Alison Williams)