Yesterday, the Riksbank once again decided to leave the policy rate unchanged at 1.75%.

The Flash CPI for May came in at +0.8%, a clear jump from -0.1% in April. The Riksbank pointed to increased inflationary pressure, mainly due to supply disruptions caused by geopolitics in the Middle East.

They acknowledge that underlying inflation is still low, but believe the risks of it rising again have grown. Therefore, they’ve raised the probability of a rate hike later this year.

Read the full press release from the Riksbank here

It’s interesting that the Riksbank continues to warn about future rate increases even though inflation is well below their target of 2% ±1%.

Once again, caution seems to be the name of the game.

---

This is a new post on the new dewlar.me blog.
You can find the old blog here: https://mrsdewlar.blogspot.com

---