Riksbank Holds Rate, Signals More Hikes Ahead

2026-09-24 07:39 By Agna Gabriel 1 min. read

The Riksbank left its policy rate unchanged at 1.75% in line with market expectations, but signalled that rates are likely to rise further as economic activity strengthens while supply shocks persist.

The Riksbank said it would accelerate tightening if inflation rises more persistently.

If the outlook remains unchanged, rate increases are expected to begin this year.

Swedish inflation in August was broadly in line with the Riksbank’s June forecast, although the headline rate remains low partly because of temporary fiscal measures.

Underlying inflation is relatively close to 2%, while indicators suggest price pressures remain above normal and could increase in the near term.

GDP growth exceeded expectations in Q2, although some of the strength was temporary, while the broader recovery and economic sentiment have improved.

Risks to inflation remain elevated, with higher oil, electricity and fuel prices, a weaker krona and continued Middle East conflict intensifying price pressures.



News Stream
Riksbank Holds Rate, Signals More Hikes Ahead
The Riksbank left its policy rate unchanged at 1.75% in line with market expectations, but signalled that rates are likely to rise further as economic activity strengthens while supply shocks persist. The Riksbank said it would accelerate tightening if inflation rises more persistently. If the outlook remains unchanged, rate increases are expected to begin this year. Swedish inflation in August was broadly in line with the Riksbank’s June forecast, although the headline rate remains low partly because of temporary fiscal measures. Underlying inflation is relatively close to 2%, while indicators suggest price pressures remain above normal and could increase in the near term. GDP growth exceeded expectations in Q2, although some of the strength was temporary, while the broader recovery and economic sentiment have improved. Risks to inflation remain elevated, with higher oil, electricity and fuel prices, a weaker krona and continued Middle East conflict intensifying price pressures.
2026-09-24
Riksbank Holds Rate, Possible Hike Later This Year
The Riksbank left its policy rate unchanged at 1.75% in August, judging that the overall economic outlook remains broadly stable despite recent surprises in growth and inflation. Both measures have been stronger than anticipated in June, while the summer’s inflation readings have raised concerns that supply disruptions linked to the Middle East conflict could generate more persistent price pressures. However, underlying inflation excluding energy and temporary fiscal effects remains close to 2%, while subdued corporate pricing plans and easing global supply-chain disruptions suggest that inflationary pressures are not yet entrenched. The central bank therefore considers the current policy stance appropriate but maintains the possibility of a rate increase later this year. It warned that a sustained acceleration in underlying inflation would prompt tighter policy.
2026-08-20
Riksbank Holds Rate, Flags Possible Hike
Sweden’s central bank held its policy rate at 1.75% in June 2026 but raised the likelihood of a hike later this year, citing growing inflation risks. While inflation remains subdued, largely due to the dampening effects of fiscal policy measures, and economic activity is weak, policymakers highlighted that prolonged supply disruptions from the Middle East conflict have heightened inflationary pressures and could amplify price effects if they persist. The Riksbank’s outlook assumes oil supply will normalize soon, with prices expected to fall, limiting the pass-through to import and consumer prices. However, uncertainty remains significant. The bank revised its 2026 inflation forecast down to 0.6% (from 0.8% in March) but increased projections for 2027 to 2.7% (from 2.0%). Inflation expectations for 2028 were little-changed at 3.4%.
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