Sweden's Riksbank keeps interest rates on hold

18th Dec 2025 09:28

(Sharecast News) - Sweden's central bank left the cost of borrowing unchanged on Thursday, as widely expected.

The first of four central banks due to announce interest rate decisions on Thursday, Riksbank opted to hold policy rate at 1.75%.

The bank said: "The prospects for the Swedish economy are looking brighter. Although it will take time before economic activity returns to normal, the recovery is underway.

"At the same time, inflation has approached 2%.

"The executive board of the Riksbank has decided to leave the policy rate unchanged at 1.75% and the rate is expected to remain at this level for some time to come."

However, it also sounded a note of caution going forward, flagging various risks both at home and aboard which could affect inflation and economic activity. They included geopolitical conflicts, uncertainty around US foreign and trade policy, high asset valuations in financial markets and weak public finances in various countries.

Also meeting today are Norway's Norges Bank, the European Central Bank and Bank of England.

Norges Bank left rates on hold at 4%, and the ECB - which announces its decision later on Thursday - is similarly expected to keep rates steady. Only the BoE is set to reduce the cost of borrowing, by 25 basis points to 3.75%, following a larger-than-forecast fall in inflation.