Our study examines the sectoral effects of monetary policy in Sweden, focusing on how six industries respond to changes in the Riksbank’s policy rate. We begin by outlining key transmission mechanisms and reviewing the literature on sectoral heterogeneity in monetary policy responses. Using quarterly data, we apply a Structural Vector Autoregressive (SVAR) model to identify dynamic effects of interest rate shocks on output, employment, and investment across sectors.

Our findings aim to improve understanding of monetary transmission and support more targeted and effective policymaking in Sweden. Among the six sectors, manufacturing exhibited the strongest response, while the information and communication sector and the real estate sector displayed the weakest.