Riksbank Holds at 1.75
Riksbank Maintains Policy Rate at 1.75 Per Cent Amid Signs of Economic Recovery and Transitory Inflation
Stockholm – November 5, 2025 – The Executive Board of the Riksbank has announced its decision to leave the policy rate unchanged at 1.75 per cent. This move aligns with the previously communicated monetary policy plan, as the outlook for inflation and economic activity is assessed to remain largely stable. The new rate decision will apply starting from November 12, 2025.
Rationale: Stabilization and Transitory Inflation
The central bank’s decision is founded on recent economic developments showing both a moderation of price pressures and signs of recovering activity.
While inflation remains above the Riksbank’s target, it has begun to fall back, following the forecast set in September. This trend reinforces the assessment that the elevated inflation is transitory.
Regarding economic activity, new information supports the Riksbank’s forecast that the economy is on its way to recovery. Preliminary statistics indicate that growth during the third quarter was somewhat stronger than expected. Despite this recovery, the labour market continues to show weak development, though there are now some initial signs that a turnaround is forthcoming.
Policy Outlook and Goals
The Executive Board expects the policy rate to remain at 1.75 per cent for some time to come. This expectation is in line with the forecast communicated in September. The decision is assessed to help strengthen economic activity and stabilise inflation close to the target in the medium term.
Vigilance Regarding Risks
The Riksbank acknowledges that the outlook for inflation and economic activity is still marked by uncertainty. The overall risk picture has not shifted significantly since September, but the Riksbank remains vigilant regarding future developments.
Key domestic uncertainty factors include household consumption behaviour and the ultimate effect of the more expansionary fiscal policy on economic activity and inflation.
The international risk landscape is still defined by several significant factors: geopolitical conflicts, persistent uncertainty regarding trade policy, high asset valuations on financial markets, and weak public finances in several countries.
Upcoming Publications
This announcement is delivered as a Monetary Policy Update, which provides the Executive Board’s assessment of how new information impacts economic prospects and monetary policy, but it does not contain any new forecasts. The minutes from the Executive Board’s monetary policy meeting will be published on November 11, 2025. The next comprehensive Monetary Policy Report, which will contain new forecasts, is scheduled for publication on December 18, 2025.