Analysis: It is unlikely that the Swedish central bank will raise interest rates this year.

Torbjorn Isaksson, Chief Analyst at the Nordic Bank, wrote that the Swedish central bank has hinted at a 50% possibility of raising interest rates by 25 basis points in the second half of the year, but the current low inflation rate and stable Krona exchange rate indicate that the central bank will likely stay put. Despite keeping interest rates unchanged at 1.75% on Wednesday, the central bank emphasized that it is prepared to take action when necessary in the current uncertainty. The Nordic Bank stated that the situation in the Middle East remains fragile, but recent events and the drop in oil prices have reduced inflation risks. "We maintain our forecast of keeping the policy interest rate unchanged at 1.75% for the remainder of 2026."