Swedish Krona: Riksbank keeps hikes on table – BNY

BNY Mellon’s Geoff Yu revealed that the Swedish Riksbank maintained its policy rate at 1.75%, finding the stance well balanced amidst robust growth and inflation, though the labor market remained subdued. Inflation rates were near 2%, with summer inflation figures exceeding expectations. The bank’s outlook remained largely unchanged, yet a potential rate increase later in the year was not ruled out if inflation persisted.

The Riksbank acknowledged that summer inflation surpassed its June forecast and that underlying inflation hovered close to 2%, while overall inflation remained low due to temporary fiscal measures. Economic uncertainty stemming from the Middle East conflict was noted, but its impact had been less severe than anticipated. The bank stated that the economic outlook remained broadly unchanged, though a possible rate hike could occur later in the year if inflation proved more persistent.