Sveriges Riksbank left its policy rate unchanged at 1.75 per cent, the Swedish central bank announced on 18 December 2025 following the Executive Board's monetary policy meeting on 17 December, its last of the year. The rate decided on applies from 7 January 2026.
The Riksbank said: "If the outlook for inflation and economic activity holds, the policy rate is expected to remain at this level for some time to come."
INFLATION NEAR TARGET
The Riksbank said that, although inflation had varied from month to month over the year, it had overall developed in line with the bank's September forecast and approached 2 per cent, and that indicators continued to support the view of inflationary pressures in line with the target. CPIF inflation, the measure the Riksbank targets, was 2.3 per cent in November.
RECOVERY UNDER WAY
The central bank said growth had been higher than in its September forecast and economic activity was assessed to be stronger. The labour market remained weak, but there were increasingly clear signs that it was beginning to improve. The bank said this gave it further reassurance that the recovery was under way, even if it would take time before economic activity returned to normal. Overall, it judged the economic outlook slightly better and the inflation outlook unchanged.
The Riksbank began cutting its policy rate in May 2024, lowering it from 4 per cent to 1.75 per cent by September 2025, and held it at that level in November. It said a policy rate at the current level helps to strengthen domestic demand and economic activity, providing the conditions for inflation to stabilise close to the target in the medium term. The decision was taken by Governor Erik Thedéen, First Deputy Governor Aino Bunge and Deputy Governors Per Jansson and Anna Seim.
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