Financial News: Sweden Keeps Policy Rate On Hold

Sweden Keeps Policy Rate On Hold

08/20/2025 - 08:59:00 (RTTNews)

(RTTNews) - Sweden's central bank maintained its policy rate on Wednesday as inflation overshot the target and the economy logged somewhat weaker than expected growth.

The executive board of the Riksbank decided to hold the policy rate at 2.00 percent as expected. But it still sees some probability of a further interest rate cut this year.

The bank has reduced the rate by 175 basis points since it started policy easing in May 2024.

Inflation climbed more than expected over the summer and remained somewhat above the target. However, the increase was assessed to be due to temporary factors. Accordingly, inflation is forecast to fall back to 2 percent going forward.

Although economic activity remained weak, there are favorable conditions for stronger economic activity, partly due to past monetary policy easing and to rising real wages for households.

Inflation and economic activity during the summer deviated somewhat from the forecast in June but the board assessed that the outlook remains largely the same.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Iceland Central Bank Holds Key Rates (01 hr(s), 22 min(s), 29 sec(s) ago)
(RTTNews) - Iceland's central bank retained its key interest rates on Wednesday as inflationar ...Full Story»

Sweden Keeps Policy Rate On Hold (01 hr(s), 39 min(s), 29 sec(s) ago)
(RTTNews) - Sweden's central bank maintained its policy rate on Wednesday as inflation oversho ...Full Story»

Luxembourg Jobless Rate Remains Stable At 5.9% (01 hr(s), 58 min(s), 29 sec(s) ago)
(RTTNews) - Luxembourg's unemployment rate held steady in July, the latest figures from the st ...Full Story»

Indonesia Unexpectedly Cuts Interest Rate (02 hr(s), 11 min(s), 29 sec(s) ago)
(RTTNews) - Indonesia's central bank eased its monetary policy unexpectedly on Wednesday in or ...Full Story»

Croatia Jobless Rate Rises To 4.0% (02 hr(s), 42 min(s), 29 sec(s) ago)
(RTTNews) - Croatia's unemployment rate increased for the first time in five months in July, f ...Full Story»

Irish Residential Property Price Inflation Steady At 7.8% (03 hr(s), 07 min(s), 29 sec(s) ago)
(RTTNews) - Ireland's residential property prices increased at a stable rate in June, data fro ...Full Story»

Italy Current Account Surplus Grows In June (03 hr(s), 55 min(s), 29 sec(s) ago)
(RTTNews) - Italy's current account surplus increased in June from the previous year, the Bank ...Full Story»

South Africa Inflation Rises To 10-Month High (04 hr(s), 20 min(s), 29 sec(s) ago)
(RTTNews) - South Africa's consumer price inflation increased further in July to the highest l ...Full Story»