FX.co ★ Swedish Riksbank Holds Rate at 2.25%

In March 2025, the Swedish Riksbank maintained its policy rate at 2.25%, aligning with market expectations. The decision reflects a largely stable outlook on both inflation and economic growth. Officials pointed out that while inflation is projected to hover above the target level throughout the year, it should stabilize around 2% by 2026. Sweden's economic recovery is being bolstered by factors such as increasing real wages, reduced interest payments, and heightened spending in defense and government sectors. Nevertheless, several risks remain, including global events, the krona's exchange rate fluctuations, rising US trade tensions, geopolitical uncertainties in Europe, and changes in consumer spending and business investments. The Riksbank confirmed its commitment to a steady rate trajectory but expressed readiness to adjust policy if inflation diverges from the target, anticipating a gradual return to stability aided by monetary measures.