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 signalled 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

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 signalled 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.