Swedish Central Bank Keeps Interest Rate Steady at 1.75%!

Sweden Central Bank's Interest Rate Decision

Sweden Central Bank (Riksbank) has decided to keep the policy interest rate at 1.75%. This decision has been interpreted as a signal of pause in the financial world.

Expectations of Economists

18 economists participating in a Bloomberg survey were also in favor of Riksbank keeping the interest rate at 1.75%. This situation indicates that market expectations remain cautious.

Borrowing Costs Will Stay Low

Borrowing costs, which continue at the lowest level in three years, are expected to support economic recovery. Riksbank has announced that it will spend the next year with fixed interest rates.

Future Predictions

Riksbank expects to increase interest rates by the end of 2026 and anticipates that the economy will grow significantly by that date. Current forecasts suggest that the gross domestic product will rise to 2.7% in 2024, while inflation is expected to decline to 1%.