Regulatory Alerts2026-05-26
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Governor's Testimony before the Finance Committee on Monetary Policy 2025
Issued by Erik Thedéen, Governor of the Sveriges Riksbank, to the Swedish Finance Committee on 26 May 2026, this report details the 2025 monetary policy framework and confirms that three gradual policy rate cuts to 1.75% were implemented to counter temporary tariff-driven inflation and support a weak but recovering economy. The document establishes that underlying inflationary pressure remained aligned with the target, long-term expectations stayed stable, and the central bank maintained a forward-looking, steady course despite significant global trade uncertainty and exchange rate volatility. It further underscores the robust institutional support for the Riksbank’s independent decision-making, Sweden’s sound public finances, and the ongoing methodological development to integrate fiscal policy effects into future economic forecasts.