Sweden’s Riksbank kept its policy rate at 1.75% for a 12th consecutive month,
the lowest among EU member states. The bank said the probability of rate rises
this year has increased as the economy recovers and signaled future tightening
will need to be larger than its June projection to bring inflation back to
around 2%. Officials said that if the inflation and activity outlooks remain
unchanged, rate hikes would begin this year. In August the Riksbank had put
roughly a 50% probability on a 25bp hike in 2026.
