Sweden's central bank leaves interest rate unchanged
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"Inflation has risen more than expected in the summer and now lies a little bit above our target," the bank said in a press release explaining its decision, although it put the rise in prices down to "temporary factors" such as geopolitical worries and the tariffs threatened and imposed by US President Donald Trump.
Several other factors, it wrote, "support the general picture that inflation will fall back towards two percent."
Therefore, while leaving the interest rate unchanged, the bank said it still saw "a certain likelihood of an additional interest rate reduction this year", in line with the forecast the bank made in June.
The bank said it saw "good conditions for the economy to strengthen", partly as a result of the earlier interest rate cuts and partly from rising real wages for households.
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But it said risks remained, with uncertainties over the Swedish economy, about how companies will set prices and how long inflation will remain higher than target.
It also warned of potential negative developments internationally, regarding US politics, the war in Ukraine and developments in the Middle East.
The bank will announce its next interest rate decision on September 23rd.
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