Riksbank stands pat on rates but says chances of a hike this year have risen

17th Jun 2026 09:57

(Sharecast News) - Sweden's Riksbank left its key interest rate unchanged on Wednesday at 1.75%, in line with expectations, but said there is now a higher chance of a rate hike later this year.

"Inflation in Sweden is low and economic activity is somewhat weaker than normal," the Bank said in a statement.

"At the same time, the supply disruptions linked to the war in the Middle East have led to inflationary pressures rising and the risks of inflation becoming too high have increased. The Executive Board assesses that it is well-balanced to leave the policy rate unchanged at 1.75%, but the probability that the rate will be raised later this year has increased in relation to the assessment in March."

Riksbank said the effects of the Middle East conflict could interact with other more underlying vulnerabilities in the global economy, such as high equity valuations and unsustainably high public indebtedness.

"The range of potential outcomes for what can happen going forward is wide and the Riksbank is highly prepared to adjust monetary policy," it said.