Financial News: Sweden Maintains Policy Rate At 1.75%

Sweden Maintains Policy Rate At 1.75%

06/17/2026 - 08:00:00 (RTTNews)

(RTTNews) - Sweden's central bank left its interest rate unchanged on Wednesday but the bank hinted at raising the rate later this year.

The Executive Board of Riksbank decided to hold the policy rate at 1.75 percent.

". it is well-balanced to leave the policy rate unchanged at 1.75 percent now, but the probability that the rate will be raised later this year has increased in relation to the assessment in March," the bank said in a statement.

The board raised the policy-rate forecast somewhat as the supply disruptions due to the Middle East war led to a rise in inflationary pressures, and increased the risks of inflation being too high.

The board observed that inflation was low and economic activity was somewhat weaker than normal.

Although the supply disruptions caused by the war are dampening economic developments somewhat, in the forecast, growth is expected to be higher this year than last year and economic activity will strengthen, the bank said.

The bank forecast GDP growth to improve to 2.2 percent in 2026 and to 2.3 percent next year. At the same time, inflation is seen at 0.6 percent this year and 2.7 percent in 2027.

As inflation is low and expected to remain below target until 2027, the bank is unlikely to hike rates this year, ING economist Francesco Pesole said.

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