Minutes from the Riksbank policy meeting show that, despite low underlying
inflation and a fragile recovery, the Middle East conflict has raised the
likelihood of a rate hike before year-end. Governor Erik Thedéen said the
conflict's effects are already visible in Swedish and foreign price‑pressure
indicators, though long‑term implications remain uncertain. He added the bank is uncertain
slightly tightening policy; adjustments to date are small but can be quickly
scaled up or down depending on the evolution of inflation risks.
