The Executive Board of the Riksbank left the policy rate unchanged at 1.75% on 17 June, judging that low underlying inflation and somewhat weaker-than-normal economic activity are being offset by rising inflationary pressures from supply disruptions linked to the war in the Middle East and a higher risk that inflation becomes too high. After cutting the rate by 25 basis points to 1.75% in September 2025, the Riksbank has kept it unchanged since. The Riksbank said inflation in Sweden remains low, largely because of fiscal policy measures, while growth was weaker than expected in the first quarter and the labour market recovery is tentative, although household consumption has continued to rise at a solid pace as purchasing power has strengthened. Its updated forecasts put CPIF inflation at 1.1% in 2026 and GDP growth at 2.2% in 2026, both below the March projections. Abroad, the Riksbank said tensions around the Strait of Hormuz have reduced the supply of oil products and pushed up energy and fuel prices, lifting inflation abroad and cost pressures in Swedish businesses, although oil futures indicate near-term supply normalisation and lower oil prices that would limit the rise in import prices and pass-through to consumer prices. The Riksbank raised its policy-rate forecast somewhat and said the probability of a rate increase later in 2026 has risen compared with March, while stressing considerable uncertainty and readiness to adjust monetary policy.
Riksbank2026-06-17
The Riksbank Holds Policy Rate Unchanged at 1.75%
The Executive Board of the Riksbank left the policy rate unchanged at 1.75% on 17 June and slightly raised its policy-rate forecast, saying low underlying inflation and weaker-than-normal economic activity are being offset by higher inflation risks from supply disruptions linked to the war in the Middle East. It lowered its 2026 forecasts for CPIF inflation to 1.1% and GDP growth to 2.2%, and said the probability of a rate increase later in 2026 has risen compared with March.