The Central Bank of Sweden has kept the rate at 3.75% and expects 2-3 reductions in the second half of the year

The Central Bank of Sweden (Riksbank) kept its key interest rate at 3.75% per annum at its meeting on Thursday. This decision coincided with analysts' expectations.

It is noteworthy that in May, the regulator lowered the rate for the first time in eight years. 

Riksbank noted that inflation is approaching the target 2%, and long-term inflation expectations are stabilizing. There is also a moderate increase in salaries.

The regulator’s management plans, while maintaining the current trajectory of inflation, to reduce the rate two or three times in the second half of the year.