Sweden's central bank left the policy rate at 1.75% for a 12th consecutive
month—the lowest in the EU—and said it is prepared to tighten policy this year
if the Iran war accelerates inflation. Governor Erik Thedéen said a hike later
this year remains possible; in June the bank placed a 50% probability on a 25bp
rise in 2026 and warned that unexpectedly high summer inflation that signals a
Broader, more persistent increase would prompt tighter policy.
