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2025.12.1808:45:21UTC+00Riksbank Keeps Rate Steady at 1.75% as Expected

During its December 2025 meeting, the Swedish Riksbank maintained its policy rate at 1.75%, aligning with general expectations. The central bank has indicated that borrowing costs are anticipated to stay at this level for a while. The Board believes this rate is suitable for bolstering economic activity and steering inflation towards a medium-term target of 2%. Recent improvements in economic outlooks have been noted, with inflation nearing the target. Policymakers observed that economic activity has shown signs of strengthening since September, further confirming the ongoing recovery, although full normalization will require more time. The Riksbank has adjusted its growth forecast for the upcoming year to 2.9%, with the CPIF expected to decrease to 0.9% in 2026 and return to 2% in 2027.

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