Policy rate unchanged at 1.75 per cent

During the summer, both growth and inflation have been higher than was forecast in June, and there is still a risk of underlying inflation becoming too high in the wake of the supply shocks in the Middle East. However, the picture is not clear-cut; for instance, companies’ pricing plans have been subdued, disruptions in global supply chains have declined and the labour market has been somewhat weaker than expected. Overall, the outlook for the economy remains largely unchanged. The Riksbank has decided to leave the policy rate unchanged at 1.75 per cent and assesses that the probability of a rate increase later this year remains. If the unexpectedly high inflation during the summer were to be the start of a larger and more lasting upturn in inflation, the Riksbank would adjust its monetary policy in a tighter direction.