Riksbank leaves its policy rate unchanged at 1.75% as expected; reiterates that the policy rate is expected to remain at this level for some time to come, in line with the forecast in December

ECONOMY

• The Swedish economy has so far proved resilient to the uncertainty related to the geopolitical situation and higher tariffs, but sentiment in the household and corporate sectors can deteriorate rapidly.

INFLATION

• Inflation was lower than expected in December, and is now close to the target of 2 per cent. Overall, the outlook for inflation and economic activity from December remains largely unchanged.

LABOUR MARKET

• The labour market situation remains weak, but there are increasingly clear signs of improvement.

SEK

• Further uncertainty factors include the development of the krona and its effects on inflation, as well as how more expansionary fiscal policy in Sweden and other countries affects the economy going forward.