Policy Rate Unchanged at 1.75 Percent

Postal address: 103 37 Stockholm, Visiting address: Brunkebergstorg 11 Telephone: 08-787 00 00, Web: riksbank.se PRESS RELEASE DATE: 2026-08-20 CONTACT Press Service tel. 08-787 02 00 Policy Rate Unchanged at 1.75 Percent During the summer, both growth and inflation have been higher than in the June forecast, and the risk of underlying inflation becoming too high in the wake of supply disruptions in the Middle East remains. However, the picture is not unambiguous; for example, companies' price plans have moderated, disruptions in global value chains have subsided, and the labor market has developed somewhat weaker than expected. Overall, the outlook largely holds. The Executive Board has decided to leave the policy rate unchanged at 1.75 percent and assesses that the probability of a rate hike later this year remains. Should the unexpectedly high inflation during the summer be the start of a larger and more persistent increase in inflation, the Riksbank will adapt monetary policy in a tighter direction. The uncertainty about developments in the Middle East remains significant, and there is still no peace agreement between the USA and Iran. The war continues to affect the global economy, but the economic effects have so far been smaller than initially feared. Oil prices and some other commodity prices have fallen back since spring, and there are signs that markets and companies have been able to adapt to the situation. But since the war is still ongoing, the fundamental cause of the supply disruptions remains, and the risk of inflation becoming too high persists. During the summer, inflation has been higher than in the Riksbank's June forecast. The more underlying inflation, which excludes both energy prices and the direct effects of temporary fiscal measures, is relatively close to 2 percent. However, measured inflation is low, largely due to temporary fiscal measures. At the same time, there are signs that GDP growth has developed stronger than forecast, and economic sentiment has clearly improved. But labor market developments have been somewhat weaker than expected.

PRESS RELEASE 2 (2) The Executive Board has decided to leave the policy rate unchanged at 1.75 percent. Measured inflation is still low, and unemployment is high. But both growth and inflation have been higher during the summer than in the June forecast, and the risk of underlying inflation becoming too high in the wake of supply disruptions remains. However, the picture is not unambiguous; for example, companies' price plans have moderated, and disruptions in global supply chains have subsided. Overall, the outlook largely holds. The Executive Board therefore assesses that it is well-balanced to leave the policy rate unchanged and that the probability of a rate hike later this year remains. Should the unexpectedly high inflation during the summer be the start of a larger and more persistent increase in inflation, the Riksbank will adapt monetary policy in a tighter direction. At the same time, uncertainty is significant, and developments call for vigilance. In addition to the war in the Middle East, there are several other risks that could affect inflation and economic outlooks. The decision on the policy rate applies from August 26, 2026. The minutes from the Executive Board's monetary policy meeting will be published on August 25, 2026. A press conference with Governor Erik Thedéen and Åsa Olli Segendorf, Head of the Monetary Policy Department, will be held today at 11:00 AM at the Riksbank. Press accreditation or equivalent is required to participate. Mandatory pre-registration to press secretary Susanne Meyer, susanne.meyer@riksbank.se by 10:00 AM on August 20, 2026. The press conference will be broadcast live on riksbank.se. About the Monetary Policy Update In connection with the announcement, a monetary policy update is published, containing the Executive Board's assessment of how new information affects the economic outlook and monetary policy. The update contains no new forecasts. The next Monetary Policy Report with forecasts will be published on September 24, 2026.