In remarks in London, Sveriges Riksbank Deputy Governor Per Jansson explained his support for the Executive Board’s decision to keep the policy rate at 1.75 percent while significantly raising the projected rate path. If the outlook for inflation and economic activity remains unchanged, rate increases are expected to begin in 2026. Jansson assessed that the risk of demand-driven inflation had risen since August as strong, broad-based growth coincided with supply constraints, higher oil product prices and a weaker krona. However, moderate inflation at the outset and considerable uncertainty justified using the available scope to leave the rate unchanged in September. He characterized the higher rate forecast as a normalization of monetary policy as the economy improves, rather than a dramatic adjustment.
Sveriges Riksbank Deputy Governor Jansson supports holding policy rate at 1.75 percent while signaling increases this year
Sveriges Riksbank Deputy Governor Per Jansson supported keeping the policy rate at 1.75 percent while significantly raising the projected rate path, with increases expected to begin in 2026 if the outlook remains unchanged. Strong demand, supply constraints, higher oil product prices and a weaker krona have increased inflation risks, but moderate initial inflation and uncertainty supported holding the rate in September.