Sweden Interest Rate

The Swedish Riksbank kept its policy rate at 2.25% in March 2025, in line with expectations, citing a largely unchanged outlook for inflation and economic growth. Policymakers noted that inflation is expected to remain above target for the rest of the year but should stabilize near 2% in 2026. Meanwhile, Sweden’s economy is recovering, supported by rising real wages, lower interest expenses, and increased defense and government spending. However, risks persist, including global developments, the krona exchange rate, escalating US trade conflicts, geopolitical tensions in Europe, and shifts in household spending and corporate investment. The Riksbank reaffirmed its stable rate outlook but remains ready to adjust policy if inflation deviates, expecting a gradual return to target as monetary policy supports stability.