The Swedish central bank reduced its key interest rate to 1.75% from 2%, expecting it to remain at this level for some time, provided that inflation and economic growth forecasts do not change.
The bank noted that stable inflation and economic activity expectations mean that the key rate will remain at this level for a while.
Economic forecasts are improving, with the government predicting 3.1% growth in 2026, driven by the largest spending bill since the COVID-19 pandemic, as elections approach in one year.
