Governor Erik Thedéen told business representatives in Härjedalen that the Riksbank’s latest assessment is for the policy rate to remain at 1.75% for some time, as Sweden’s cyclical recovery continues and inflation is close to the target. Inflation is expected to decline during the year, partly due to the temporary reduction in VAT on food. He characterised monetary policy as being on a stable course and said the Riksbank can tolerate minor deviations without immediately changing direction, while remaining prepared to adjust if the outlook changes. Recent information points to an ongoing recovery and potentially somewhat lower underlying inflation this year than in the most recent forecast; further data will be assessed ahead of the next monetary policy meeting. Thedéen also raised the declining use of cash, arguing cash remains important for contingency and inclusion and that the cash infrastructure needs to function significantly better, welcoming proposed legislation that would impose stronger requirements on banks to provide businesses with services for depositing daily cash takings.
Riksbank 2026-02-25
Sweden's Riksbank reiterates policy rate to stay at 1.75% for some time and supports tougher bank obligations to provide cash services
Riksbank Governor Erik Thedéen stated that the policy rate will remain at 1.75% as Sweden's cyclical recovery continues and inflation nears the target, with expectations of a decline partly due to reduced VAT on food. He emphasized monetary policy stability, readiness to adjust if necessary, and highlighted the importance of cash infrastructure, supporting legislation for improved bank services for cash deposits.