Sweden's central bank, Sveriges Riksbank, held its policy rate at 1.75% at its March 2026 monetary policy meeting, with the rate taking effect from 25 March 2026. The decision reflected the board's assessment that conditions remain broadly favourable for continued economic recovery in Sweden, but that elevated energy prices driven by ongoing conflict in the Middle East introduce sufficient uncertainty to warrant maintaining the current rate stance while the inflation picture is reassessed.
INFLATION OUTLOOK
The Riksbank said underlying inflation had been unexpectedly low in recent outcomes and expects it to be in line with 2% around the turn of the year, while higher energy prices will push up CPIF inflation in the near term; it forecasts CPIF inflation of 1.5% in 2026 and sees it reaching the target in 2029. The board's March communication emphasised the importance of distinguishing between temporary external price pressures originating in global commodity markets and any more durable shift in underlying domestic price dynamics.
CONDITIONS BROADLY FAVOURABLE FOR RECOVERY
The Riksbank characterised the overall economic backdrop as broadly favourable for continued recovery.
The Riksbank said the policy rate is expected to remain at 1.75 per cent for some time to come, but that it is monitoring developments closely and will adjust monetary policy if the outlook for inflation and economic activity so requires.
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