If you look back at the Swedish rate hike in 2010, start with this chart

 

Note that square jump in the sheet after the crash? That hump more then likely initiated a deflationary force.

But, it ain't rates, it is this sheet. All the developed economies suffered a deflationary force after the crash. The reason was a sudden  value added tax imposed by central banks. It is the effect of accurate double entry accounting and the monopoly tax currency. 

Sweden is a progressive taxation state,they did not want a value added tax imposed by fiat. The prior inflation likely a result of the oil shock. Japan has the largest sheet and suffers the worse deflation.  Holding cash becomes a tax advantage.

The government ramps up faster than it ramps down. Like California, and it causes costs to accumulate. The banking sector shrinks faster as they are the tax channel.   States and cities are in trouble with deflation,they are not geared for it.