Sweden Interest Rate

The Swedish Riksbank left its policy rate unchanged at 1.75% during its December 2025 meeting, as widely expected, signaling that borrowing costs are likely to remain at current levels for some time. The Board considers the rate appropriate to support economic activity and guide inflation toward the 2% medium-term target. Economic prospects have improved slightly, and inflation is approaching the target. Policymakers noted that economic activity has strengthened since September, giving further evidence that the recovery is underway, though full normalization will take time. The Riksbank raised its growth forecast for next year to 2.9%, while CPIF is projected to fall to 0.9% in 2026 before returning to 2% in 2027. The central bank noted, however, that risks to both inflation and economic activity are still present.