Riksbank maintains policy rate at 1.75 percent, outlook stable

The Riksbank's Executive Board assessed that the current policy rate level of 1.75 percent contributes to economic activity strengthening and inflation stabilising around the target in the longer term.

New information indicates that the Swedish economy grew at a solid pace at the end of last year, performing somewhat stronger than expected.

Household consumption continued to rise.

Inflation was lower than anticipated in December, now close to the 2 percent target.

The labor market situation, while still weak, shows increasingly clear signs of improvement.

Overall, the outlook for inflation and economic activity from December remains largely unchanged, providing a stable basis for the current policy stance.

Despite the stable domestic outlook, the Riksbank noted that uncertainty regarding the global economic and geopolitical situation has increased.

Geopolitical developments, particularly concerning US trade and foreign policy, have widened the range of potential outcomes.

While financial markets have shown limited reaction, the US dollar has continued to weaken against the Swedish krona.

The Swedish economy has so far proved resilient to this uncertainty and higher tariffs, but sentiment in the household and corporate sectors could deteriorate rapidly.

The Riksbank remains vigilant with regard to these developments and is prepared to adjust monetary policy if the outlook changes.