Published by Global Banking and Finance Review
Posted on November 6, 2025
1 min readLast updated: January 21, 2026
Riksbank Governor Thedeen highlights uncertainty in Sweden's economic outlook and inflation, maintaining the interest rate at 1.75%.
COPENHAGEN (Reuters) -The Swedish outlook for economic activity and inflation is uncertain, central bank Governor Erik Thedeen said on Thursday, adding that the Riksbank was still vigilant regarding developments.
"We are expecting the policy rate to remain at this level for some time to come," Thedeen said in a statement, commenting on the Riksbank's decision on Wednesday to keep the Swedish interest rate unchanged at 1.75%.
"Our assessment is that it will help strengthen economic activity and stabilise inflation close to the target in the medium term," he said.
The central bank estimates that the elevated inflation this year is transitory, Thedeen said. "I would say this still applies even though the flash CPI was a bit higher than expected," he added.
Flash figures from the statistics office showed on Thursday that consumer prices in Sweden rose faster than expected in October, increasing 0.4% from September and 3.1% against a year ago.
(Reporting by Louise Rasmussen, editing by Essi Lehto)
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to influence economic activity.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
A central bank is a national institution that manages a country's currency, money supply, and interest rates.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal.
Economic growth is an increase in the production of goods and services in an economy over a period of time.
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