Riksbank minutes said if higher‑than‑expected inflation this summer proves persistent, a policy rate increase later this year remains possible. The bank left the policy rate at 1.75% at its last meeting. Governor Thedéen said the next policy move would need to be a rate increase but timing is uncertain. The minutes described a mixed outlook: headline inflation is low at 0.7% YoY in July; growth has picked up while firms' pricing plans remain muted, oil has retreated and the labour market is weak

Riksbank minutes said if higher‑than‑expected inflation this summer proves persistent, a policy rate increase later this year remains possible. The bank left the policy rate at 1.75% at its last meeting. Governor Thedéen said the next policy move would need to be a rate increase but timing is uncertain. The minutes described a mixed outlook: headline inflation is low at 0.7% YoY in July; growth has picked up while firms' pricing plans remain muted, oil has retreated and the labour market is weak. Risks cited include election‑year temporary tax cuts boosting headline inflation, underlying price pressures running hotter than expected over the summer, and the Middle East conflict spilling over and pushing domestic prices higher.