On Wednesday, Sweden's central bank left its key interest rate undisturbed. The bank gave indications that a reduction might be in the offing, either in May or June.
The Riksbank's Executive Board chose to maintain the policy rate steady at 4.00 percent. While the entrenched inflation risk continues to decrease, the inflationary pressure is still significantly high.
Policymakers have recognized that as inflation veers closer to target levels, and the economy weakens, the necessity for a restrictive monetary policy diminishes. The central bank declared that, provided inflation prospects remain favorable, it is likely to execute a rate cut in either May or June.
