Published by Global Banking & Finance Review®
Posted on December 30, 2025
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleSweden's central bank will keep its interest rate at 1.75% through 2026, citing favorable inflation and spare capacity, according to recent meeting minutes.
STOCKHOLM, Dec 30 (Reuters) - Sweden's policy interest rate is likely to stay at the current 1.75% through 2026, minutes of the Riksbank's most recent monetary policy meeting showed on Tuesday.
The Riksbank announced on December 18 it had left the rate unchanged and forecast no change for some time to come.
"Our current forecast means that the policy rate is expected to remain at 1.75 per cent next year and that we will then begin slow increases," central bank Governor Erik Thedeen said in the minutes of the meeting.
"Since the inflation outlook is favourable and there is plenty of spare capacity, it is appropriate, despite strong growth, to leave the policy rate at its current level for some time to come," he said.
The Riksbank, which targets 2.0% headline inflation, will publish its next monetary policy decision on January 29.
(Reporting by Simon Johnson, Anna Ringstrom and Johan Ahlander, editing by Terje Solsvik)
A central bank is a national institution that manages a country's currency, money supply, and interest rates. It oversees the banking system and implements monetary policy to ensure economic stability.
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates in an economy. It aims to achieve macroeconomic objectives such as controlling inflation and stabilizing the currency.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage. They are influenced by central bank policies and can affect economic activity and inflation.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks monitor inflation to adjust monetary policy accordingly.
Financial stability refers to a condition where the financial system operates effectively, with institutions able to manage risks and absorb shocks, ensuring the economy functions smoothly.
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