Sweden's Central Bank Keeps Interest Rate Steady at 1.75%!

Swedish Central Bank's Interest Rate Decision

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

Expectations of Economists

18 economists participating in a Bloomberg survey also expected Riksbank to keep the interest rate at 1.75%. This indicates that market expectations remain cautious.

Borrowing Costs Will Stay Low

The borrowing costs, which have remained at their lowest levels in the last three years, are expected to support economic recovery. Riksbank announced that it would spend the next year with fixed interest rates.

Future Predictions

Riksbank expects to raise 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%.