Sweden and Norway leave interest rates unchanged amid global turmoil
The Swedish and Norwegian central banks are both keeping their interest rates steady for now, but future cuts are possible despite economic uncertainty in the wake of US tariffs.
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Sweden's Riksbank left its policy rate at 2.25 percent, saying it would be "wise to wait" for more information to get a "clearer picture" of the outlook for inflation and economic activity.
"Uncertainty in the global economy has increased significantly since the change of US president, not least as a result of the new US trade policy," it said in a statement.
US President Donald Trump unveiled sweeping tariffs last month, raising fears that the move could rekindle inflation.
"Growth prospects have deteriorated in both the United States and Europe," Riksbank said.
Swedish inflation reached 2.3 percent in March and there is "considerable uncertainty" about its direction, it said.
A weaker economic outlook could mean lower inflation but a more protectionist trade policy could instead lead to higher consumer prices, it said.
The bank, however, said it was "somewhat" likely inflation would be lower, which "could suggest a slight easing of monetary policy going forward".
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Norway's central bank maintained its policy rate at 4.5 percent as inflation remains above its two-percent target.
"Trade barriers have become more extensive, and there is uncertainty about future trade policies," Norges Bank deputy governor Pål Longva said.
"This may pull the interest rate outlook in different directions," Longva added.
He said there is "uncertainty about future economic developments" but the central bank's "current assessment of the outlook implies that the policy rate will most likely be reduced in the course of 2025".
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