Sweden’s Riksbank decided to maintain its key interest rate at 1.75 percent following its monetary policy meeting today. This marks a pause after eight consecutive rate cuts since peaking at 4 percent in autumn 2023. The central bank cited a shift in economic forecasts, noting that inflation is now expected to be higher than previously projected in February. Consequently, the Riksbank indicated a growing likelihood of raising interest rates later this year. The decision reflects a careful balancing act between supporting economic activity and controlling inflationary pressures. The current rate was established in October, and the bank continues to monitor economic data closely. This signals a potential change in monetary policy direction as the year progresses.