Sveriges Riksbank left its policy rate unchanged at 1.75% on Thursday 20 August 2026 and said the probability of a rate increase later this year remained. The decision, taken at the Executive Board’s monetary policy meeting on 19 August, applies from 26 August.
The central bank said inflation during the summer had been higher than it forecast in June, and there were signs that GDP growth had also been stronger than expected, with sentiment in the economy clearly improved. Labour market developments were somewhat weaker than expected. Measured inflation remains low, largely because of temporary fiscal policy measures, while a more underlying measure excluding energy prices and the direct effects of those measures is relatively close to the 2% target.
TIGHTENING BIAS
The Executive Board said there was still a risk of underlying inflation becoming too high in the wake of supply shocks linked to the war in the Middle East, although the picture was not clear-cut, with companies’ pricing plans subdued and global supply chain disruptions reduced. It judged that leaving the rate unchanged was a well-balanced policy.
“If the unexpectedly high inflation during the summer were to be the start of a larger and more lasting upturn in inflation, the Riksbank would adjust its monetary policy in a tighter direction,” the central bank said.
The Riksbank noted that there was as yet no peace agreement between the United States and Iran, although oil and some other commodity prices had come down since the spring and the economic effects of the war had so far been smaller than initially feared.
SEPTEMBER DECISION
Minutes of the August meeting were due on 25 August. The next policy rate decision is due on 24 September 2026, alongside a new Monetary Policy Report containing updated forecasts.