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Sweden's Riksbank Holds Interest Rate Steady at 1.75%, Cuts Growth Forecast Amid Global Uncertainty

Economy & businessEconomy
Key Points
  • Riksbanken left its key interest rate unchanged at 1.75% as expected
  • The central bank lowered its 2026 growth forecast to 2.5% from 2.9% in December
  • Riksbanken warned that the Middle East war has created significant uncertainty in economic forecasts

75% as expected, according to multiple reports from March 19, 2026. The bank also maintained its interest rate path unchanged from its December meeting. 9% in December.

The bank expects interest rates to remain at the current level throughout the year, but warned that the war in the Middle East has made economic forecasts highly uncertain. In a press release following the decision, Riksbanken stated that 'the world has developed in a very dramatic way recently,' highlighting concerns about global instability affecting Sweden's economic outlook.

the world has developed in a very dramatic way recently

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