Minutes from the Riksbank’s recent monetary policy meeting reveal that Sweden’s policy interest rate is expected to remain at its current level of 1.75 per cent through 2026. The Riksbank, Sweden’s central bank, aims to maintain headline inflation at 2.0%. Its primary role is to ensure price stability and a secure financial system.
The Riksbank had announced on December 18 that the interest rate would remain unchanged, with projections indicating no alterations in the near future. Central bank Governor Erik Thedeen stated in the meeting minutes that the forecast anticipates the policy rate holding steady at 1.75 per cent for the coming year before gradual increases commence.
Thedeen further explained that, given the positive inflation outlook and considerable spare capacity within the economy, maintaining the current policy rate is appropriate, even in light of strong economic growth. This decision reflects a cautious approach to monetary policy, prioritising stability amidst ongoing economic activity.
The Riksbank is scheduled to release its next monetary policy decision on January 29. Market participants will be closely watching for any shifts in the bank’s assessment of the economic landscape and potential implications for future interest rate adjustments.
