Riksbank Holds Steady Amid Global Uncertainty and Inflation Concerns

Sweden's central bank, the Riksbank, maintained its policy rate at 2.25%, balancing a sluggish domestic economy and resurgent inflation risks. Since last year's peak inflation over 10%, the bank has cut rates multiple times, now monitoring developments carefully amid global trade tensions and economic uncertainties.

Sweden's Riksbank has chosen to maintain its interest rate at 2.25%, as anticipated, amid apprehensions over domestic economic sluggishness and rising inflation. This decision comes despite a series of rate cuts since last year following a peak inflation of over 10% in late 2022.

The central bank's recent statement indicates a cautious stance, expecting inflation rates between 2% and 3% for the current year, with hopes of easing thereafter. However, uncertainties in global trade policies, geopolitical tensions, and economic strategies across leading economies add pressure to the bank's cautious approach.

Upcoming decisions from major global banks, including the Federal Reserve and the Bank of England, are expected to play a critical role in shaping international economic strategies. The Riksbank remains vigilant, ready to adjust if necessary to address inflation and economic activity effectively.

(With inputs from agencies.)