- Decision
- Maintain
- Rate change
- 0 bps
- policy rate
- 1.75%
Sveriges Riksbank’s Executive Board kept the policy rate at 1.75 % in its 5 November 2025 decision, citing a decline in above-target inflation broadly consistent with September forecasts and evidence of a strengthening economic recovery despite a still-weak labour market. Following three 25 bp cuts since January—most recently in September—the rate now stands 75 bp below its starting point for the year. The Board expects the policy rate to “remain at this level for some time”, judging this stance appropriate to bolster activity and steer inflation towards target over the medium term. Preliminary data show Q3 growth outpacing expectations, while early signs point to an impending turnaround in employment. Externally, the risk environment remains shaped by geopolitical conflicts, trade-policy uncertainty, high global asset valuations and fragile public finances, and the Riksbank sees domestic uncertainties around household spending and fiscal stimulus. Policymakers pledged vigilance and openness to future adjustments should inflation or economic conditions diverge from the current outlook.
Rate evolution
From June 2025 to September 2026, the Riksbank lowered the policy rate from 2 per cent to 1.75 per cent, cutting in June and September 2025 and then holding it unchanged. The June cut reflected a recovery that had lost momentum, a softer inflation outlook, weak growth and high unemployment, while an August pause treated above-target inflation as temporary despite weak activity, and the September cut followed signs of easing inflation pressures even as the recovery and labour-market improvement remained delayed.
During subsequent holds through June 2026, the Riksbank said inflation had moved close to target and then below forecast while activity improved only tentatively, but uncertainty widened from trade policy and domestic demand to the war in the Middle East, energy and commodity prices, the krona and fiscal policy. On 17 June, it judged that underlying inflation was low and activity somewhat weaker than normal, but raised its policy-rate forecast somewhat and flagged a greater probability of an increase later in 2026 as war-related supply disruptions lifted inflationary pressures.
On 20 August, the Riksbank held the policy rate at 1.75 per cent, noting that growth and inflation had exceeded its June forecast but that subdued company pricing plans, fewer global supply-chain disruptions and weaker-than-expected labour-market developments left the overall outlook largely unchanged. On 24 September, it again held the rate at 1.75 per cent, but said stronger, broad-based activity and continued supply shocks meant the policy rate should rise more than projected in June, with increases expected to begin in 2026 if the outlook remained unchanged, as inflation pressures remained above normal despite measures of underlying inflation being relatively close to 2 per cent.