Central Banks

Riksbank Keeps Interest Rates on Hold in Surprise Move 

  • Economists had been split with a majority awaiting an increase
  • Stubborn inflation supported hiking case, but growth is feeble

The Sveriges Riksbank, Sweden's central bank, in Stockholm.

Photographer: Andrey Rudakov/Bloomberg
Lock
This article is for subscribers only.

The Riksbank paused its tightening campaign, refraining from inflicting a ninth increase in borrowing costs on an increasingly sickly Swedish economy.

Policymakers led by Governor Erik Thedeen left the benchmark interest rate at 4%, in a decision that had split economists. A majority predicted a hike, though eight out of 21 forecasts compiled by Bloomberg anticipated no change.