On 20th August the Swedish Riksbank (Swedish Central Bank) decided to leave the policy rate unchanged at 1.75 %. Accordingly, the policy rate is stable since October 2025, when the central bank lowered the rate from 2.00 % to 1,75%. In 2024, at the top of the housing crisis in Sweden, the policy rate was 4.00 %. The central bank describes different developments in its statement: Measured inflation is low due to temporary fiscal measures, whilst unemployment is high. At the same time, growth and inflation were stronger than expected over the summer; supply disruptions caused by the war in the Middle East continue to pose a risk of core inflation rising too high. Arguments against further tightening include the fact that companies’ plans for price increases are modest and global supply chain problems have eased.
The central bank therefore considers a wait-and-see approach to be the right course of action, whilst signalling the possibility of an interest rate rise later in the year should the rise in inflation prove to be persistent. The next decision on the policy rate is scheduled for 24th September 2026.
Swedish construction industry association Byggföretagen sees the stable rate as an important signal for creating trust in the markets and enable companies to make long-term investments.