Sweden's central bank has kept borrowing costs unchanged for the twelfth consecutive month, while reiterating its readiness to tighten monetary policy this year should inflationary pressures intensify due to the conflict in Iran. On Thursday, the Riksbank maintained its key interest rate at 1.75%, the lowest among European Union nations, a decision that aligned with the forecasts of all 19 economists surveyed prior to the announcement.

Policymakers, led by Governor Erik Thedéen, stated in their official communication that "the possibility of a rate increase later this year remains on the table." This echoes their June projection, which assigned a 50% probability to a 25-basis-point hike in 2026. The central bank elaborated, noting that "if unexpectedly high summer inflation signals a more significant and sustained upward trend, the Riksbank will adjust its monetary policy in a tightening direction."