The Sveriges Riksbank kept its policy rate unchanged at 1.75% for a third consecutive meeting at its first policy decision of 2026, in line with expectations. The central bank indicated that the rate is likely to remain at this level for some time as it assesses the impact of the current policy stance, which is expected to support stronger economic activity and help inflation stabilize around the target over the longer term. Policymakers, however, warned that uncertainty around inflation and growth has increased, driven in part by geopolitical tensions and shifts in US trade and foreign policy. While Sweden’s economy has remained resilient so far despite higher tariffs, household and business sentiment could weaken quickly. They also highlighted the krona’s impact on inflation and the effects of more expansionary fiscal policy in Sweden and abroad as key risks going forward.
