Sweden's Riksbank Holds Key Rate Steady, No Changes Expected for Some Time
By Dominic Chopping
STOCKHOLM--Sweden's central bank held its key policy rate at 1.75% Thursday and maintained that the next move will be hike, but not for some time.
The decision was in line with a Wall Street Journal poll.
Riksbank policymakers also held rates at its previous meeting, noting that inflation was falling in line with forecasts while data was suggesting an economic recovery was on the horizon and the labor market showing signs of a turnaround.
The central bank reiterated Thursday that inflation has developed in line with its forecast, while the prospects for the Swedish economy are looking brighter and there are increasingly clear signs that the labor market is beginning to improve.
Although it will take time before economic activity returns to normal, the recovery is under way, and a policy rate at the current level will help strengthen economic activity and allow inflation to stabilize close to the 2% target in the medium term, policymakers said in a statement.
"If the outlook for inflation and economic activity holds, the policy rate is expected to remain at this level for some time to come," they added.
The central bank's forecasts signal an unchanged rate throughout next year before beginning to gradually rise.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
December 18, 2025 04:10 ET (09:10 GMT)
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