Sveriges Riksbank Keeps Policy Rate Unchanged at 1.75 Percent
In line with expectations, the Riksbank left the interest rate unchanged while announcing that new hikes could be implemented in the coming period to bring inflation closer to its target.
The Swedish central bank kept its policy rate unchanged at 1.75 percent, the lowest level in the European Union, and signaled that interest rates could be raised in the future depending on the inflation outlook.
Interest Rate Kept Unchanged
The Swedish central bank left its policy rate at 1.75 percent, and this decision was in complete alignment with market expectations.
Signal for Future Hikes
The decision text emphasized that interest rates might need to be raised more than previously forecasted in June in order to stabilize inflation around 2 percent.
Economic Growth and Stimulus
The largest economy in the Scandinavian region returned to growth in the second quarter, driven by tax cuts and low borrowing costs.