Riksbank holds rate at 1.75% and points to possible rises this year

Sweden’s central bank left its policy rate at 1.75 percent on Thursday but said rates may rise later this year if its economic outlook holds. The unchanged rate applies from 30 September. Governor Erik Thedéen explained the decision in a Riksbank video released on Thursday.

The Riksbank’s forecast puts the average policy rate at 1.85 percent in the final quarter of 2026 and 2.07 percent in the first quarter of 2027. These figures are projections, not decisions on future rate changes.

The bank says economic activity is stronger than expected. Inflation is relatively close to its two-percent target once temporary fiscal measures are excluded, while a weaker krona, higher energy prices and supply shocks could keep price pressure elevated.

For borrowers, today’s decision keeps the central-bank rate steady for now. The next monetary policy decision is due on 4 November, when the bank will assess whether the economy and inflation still support a rise.

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