STOCKHOLM (dpa-AFX) - Sweden's central bank maintained its key interest rate and retained its forward guidance that the rates will remain at the current level in the near-term.
The Executive Board of the Riksbank decided to leave the policy rate unchanged at 1.75 percent.
The policy rate is expected to remain at this level for some time to come, in line with the forecast in December, the bank said.
'The Executive Board assesses that the current level of the policy rate contributes to economic activity strengthening and inflation stabilising around the target in the longer term,' the bank said.
In the statement, the bank highlighted the uncertainty related to the US trade and foreign policy. The board observed that the Swedish economy has so far proved resilient to the geopolitical situation and higher tariffs.
However, sentiment in the household and corporate sectors deteriorated rapidly. Moreover, uncertainty factors include the development of the krona and its effects on inflation, as well as how more expansionary fiscal policy in Sweden and other countries affects the economy going forward.
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