Home›Forex›Central Banks›Riksbank holds policy rate at 1.75%, keeps hike option…

Riksbank holds policy rate at 1.75%, keeps hike option open

The decision was framed as balanced, with the stance dependent on whether inflation persists, while underlying inflation is near 2% and summer readings beat forecasts.

Reported · Written up by our desk · Central Banks

BNY Mellon’s Geoff Yu says the Swedish Riksbank kept its policy rate unchanged at 1.75%, describing the current stance as broadly well balanced despite stronger growth and inflation alongside a softer labor market.

Yu added that the outlook remains largely unchanged, but it leaves room for a possible rate increase later this year if inflation persists.

The note also points to inflation and activity data, saying underlying inflation is near 2% and that summer readings came in above forecasts.

The broader market context discussed alongside the note includes stabilizing US Treasury yields and a modest USD move that can influence cross-currency dynamics, including GBP/USD and EUR/USD levels.

Latest closeEUR/USD 1.138 ▼0.6%|GBP/USD 1.322 ▼0.9%

More like this

Sources