Sweden's central bank, Sveriges Riksbank, reduced its policy rate by 25 basis points to 2.00% at its June 2025 monetary policy meeting, resuming an easing cycle that had paused in earlier months. The cut came as the Executive Board judged that the economic recovery had lost momentum and that inflation was likely to be somewhat lower than previously forecast.
Swedish CPIF inflation stood at 2.3% in May 2025 — close to the Riksbank's 2% target — while the Riksbank expected weaker demand to push inflation somewhat lower than in its previous forecast.
SIZE OF THE CUT
The 25 basis-point move matched the size of most of the Riksbank's earlier cuts in the cycle, although it had cut by 50 basis points in November 2024.
FURTHER REDUCTION FLAGGED FOR SECOND HALF OF 2025
In its accompanying monetary policy report, the Riksbank indicated that its central forecast incorporated the possibility of a further rate reduction in the second half of 2025. The forward guidance was conditional in nature — the bank stopped short of pre-committing to an additional cut and emphasised that any decision would depend on incoming data on inflation, economic activity, and the global environment.
The Riksbank said it would monitor developments and stand ready to adjust its policy stance as conditions warranted.
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