Falcon powers – The Swedish Central Bank (Riksbanken) announced in a press release that the interest rate will remain unchanged at 3.75%, which was as expected.
The statement read: “New information suggests that inflationary pressures are largely in line with forecasts. The interest rate will remain unchanged at 3.75%, in line with the March forecast and the May monetary policy update.”
At the same time, the Monetary Policy Committee of the bank has reduced its forecast for the future path of the interest rate.
In the new forecast, the central bank expects there to be two or three interest rate cuts during the second half of the year. The previous statement had indicated two expected cuts this year.
The bank’s announcement came just days after Finance Minister Elisabeth Svantesson said that the fight against inflation had been achieved.
The central bank noted in its statement that the inflation and economic outlook is uncertain. The bank added: “There are risks linked to inflation abroad, geopolitical tensions, the krona exchange rate, and the economic recovery in Sweden, which could lead to a higher or lower interest rate than expected.”
