Sveriges Riksbank kept its policy rate at 1.75 % and reiterated that the rate is likely to stay at this level “for some time”, judging the current stance to balance support for activity with a path that should return underlying inflation to the 2 % target around the turn of the year despite the highly uncertain impact of the Middle-East war. After a 25 bp cut to 1.75 % in September 2025 the Executive Board has held the rate unchanged at each subsequent meeting. Underlying inflation has surprised on the downside, yet higher energy costs are seen lifting near-term CPIF; the central bank projects CPIF at 1.5 % in 2026 and 2.7 % in 2028, while GDP growth is forecast at 2.5 % in 2026 with unemployment edging down to 8.4 %. Externally, the conflict has triggered large swings in energy markets, pushed short-term global rates higher and strengthened the USD against the krona, adding to forecast uncertainty. The Riksbank will adjust policy if the evolving inflation or growth outlook warrants.
Sveriges Riksbank holds policy rate unchanged at 1.75%
Sveriges Riksbank held the policy rate at 1.75 % and reiterated that it expects to keep it there “for some time”, arguing this stance balances activity support with a return of inflation to the 2 % target amid Middle-East conflict uncertainty. The board noted weaker core inflation but higher energy costs and said it stands ready to adjust policy if the outlook shifts.