Sweden Interest Rate

Sweden’s central bank kept its policy rate unchanged at 1.75% during its October meeting, as widely expected, to support economic activity and guide inflation toward its 2% medium-term target. Policymakers indicated that borrowing costs are likely to remain at this level for some time. While inflation remains above target, it has declined broadly in line with the September forecast, reinforcing the view that the current price pressures are temporary. Economic growth was slightly stronger than anticipated in the third quarter, though the labor market continues to show signs of weakness. The Riksbank also highlighted several risks that could influence future policy decisions, including household consumption trends, potential effects of more expansionary fiscal measures, and heightened geopolitical and trade-related uncertainties.