Sveriges Riksbank kept its policy rate at 1.75 % and reiterated that the rate is likely to stay at this level “for some time”, judging the current stance to balance support for activity with a path that should return underlying inflation to the 2 % target around the turn of the year despite the highly uncertain impact of the Middle-East war. After a 25 bp cut to 1.75 % in September 2025 the Executive Board has held the rate unchanged at each subsequent meeting. Underlying inflation has surprised on the downside, yet higher energy costs are seen lifting near-term CPIF; the central bank projects CPIF at 1.5 % in 2026 and 2.7 % in 2028, while GDP growth is forecast at 2.5 % in 2026 with unemployment edging down to 8.4 %. Externally, the conflict has triggered large swings in energy markets, pushed short-term global rates higher and strengthened the USD against the krona, adding to forecast uncertainty. The Riksbank will adjust policy if the evolving inflation or growth outlook warrants.
Riksbank 2026-03-19
Sveriges Riksbank holds policy rate unchanged at 1.75%
Sveriges Riksbank held the policy rate at 1.75 % and reiterated that it expects to keep it there “for some time”, arguing this stance balances activity support with a return of inflation to the 2 % target amid Middle-East conflict uncertainty. The board noted weaker core inflation but higher energy costs and said it stands ready to adjust policy if the outlook shifts.