Key Interest Rate Remains at 2 Percent – Could Be Lowered Later This Year

Dagens Nyheter.

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The summer's unexpectedly high inflation means that the Riksbank leaves the interest rate at 2 percent in the latest interest rate announcement on Wednesday, despite the continued weakness of the economy. At the same time, it is flagging a possible reduction later in the year. "Why wait? The risk of overheating should be seen as minimal," says Felicia Schön, private economist at Avanza in a comment.

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The Central Bank has called a meeting at the bank's premises at 09:30 where the decision of the bank's Monetary Policy Committee to keep the policy rate unchanged will be justified.

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The key interest rate will be left unchanged at 2.00 percent, the Riksbank announced. However, the bank remains open to a reduction later this year.