The Swedish central bank has maintained the benchmark interest rate at a three-year low of 1.75%, in line with market expectations. According to Jinshi Data, this is the fourth consecutive month that the bank has kept the rate unchanged and reiterated its policy guidance that rates will not be adjusted at least until the end of 2026.
The Swedish economy is showing strong signs of recovery, with GDP growth expected to reach 2.4% in 2026, potentially making it one of the fastest-growing economies in Europe. Inflation has significantly retreated from its post-pandemic peak and is currently close to, or may briefly fall below, the central bank's 2% inflation target.
Policymakers warn of rising risks, particularly from the United States. The statement points out that the geopolitical situation at the beginning of 2026 has sharply deteriorated, largely due to the diplomatic actions of the U.S. government, and warns that the situation may change rapidly.