Swedish GDP for 2026 is now seen expanding by 3 per cent

Sweden's policy interest rate is likely to stay at the current 1.75 per cent through 2026, minutes of the Riksbank's most recent monetary policy meeting showed on Tuesday.

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The Riksbank announced on December 18 it had left the rate unchanged and forecast no change for some time to come.

"Our current forecast means that the policy rate is expected to remain at 1.75 per cent next year and that we will then begin slow increases," central bank Governor Erik Thedeen said in the minutes of the meeting.

"Since the inflation outlook is favourable and there is plenty of spare capacity, it is appropriate, despite strong growth, to leave the policy rate at its current level for some time to come," he said. The Riksbank, which targets 2.0 per cent headline inflation, will publish its next monetary policy decision on January 29.