05.11.202508:44:59UTC+00Riksbank Holds Rate Steady at 1.75%

During its October meeting, Sweden's central bank decided to maintain the policy rate at 1.75%, a move that was largely anticipated. This decision aims to bolster economic activities and steer inflation toward the medium-term target of 2%. The governing body signaled that interest rates are expected to stay unchanged for a considerable period. Although inflation remains above the target, it has decreased in line with the forecast made in September, suggesting that the current inflationary pressures are likely transitory. The third quarter saw economic growth slightly exceed expectations; however, the labor market continues to exhibit weakness. The Riksbank also pointed out several risk factors that could impact future policy choices. These include trends in household consumption, the potential impact of more expansive fiscal strategies, and the increasing geopolitical and trade-related uncertainties.