Sweden Keeps Interest Rate Unchanged

(RTTNews) - Sweden's central bank left its key interest rate unchanged on Thursday and suggested that the rate is set to remain on hold. The Executive Board of Riksbank decided to hold the policy rate at 2.25 percent and assessed that the rate will remain at the current level going forward.

The upturn in inflation at the start of the year was assessed as temporary. The bank forecast inflation to be between 2 and 3 percent this year, and then to fall and stabilize close to the target.

Further, the bank observed that the Swedish economy is in a recovery phase, but the rebound in the labor market will take a little longer. Overall, the outlook for both inflation and economic activity remains largely intact, the bank added.

Capital Economics economist Adrian Prettejohn said monetary policy will be on hold for the foreseeable future. However, the bank is likely to hike rates at some stage next year.