Riksbanken Holds Interest Rate at 2% Amid Inflation Concerns
Riksbanken keeps interest rate steady at 2% but highlights concerns over rising inflation.
- • Interest rate held steady at 2%
- • Recent inflation figures higher than expected
- • Confidence remains that inflation will return to 2% target
- • Future rate adjustments possible based on inflation developments
Key details
On August 26, 2025, Riksbanken released the protocol from its latest interest rate meeting, confirming that the policy rate remains unchanged at 2 percent. This decision aligns with market expectations, but the meeting's minutes revealed deeper concerns regarding inflation.
Multiple board members noted that recent inflation outcomes have been surprisingly high, prompting discussions about the potential for adjusting monetary policy in the future. Despite the current inflation exceeding predictions, several members expressed optimism that inflation would eventually stabilize and return to Riksbanken's target of 2 percent. This reflects a careful balancing act by the central bank as it navigates economic pressures while aiming to maintain price stability.