Riksbank holds at 1.75 percent and raises its projected rate path

Sweden's central bank held its policy rate at 1.75 percent Thursday. It also said increases should begin this year if its outlook holds. The Riksbank decision takes effect September 30.

The projected rate averages 1.85 percent in the fourth quarter. It reaches 2.07 percent in the first quarter of 2027 and 2.38 percent by the third. The June path had put those averages at 1.82 percent, 1.89 percent and 1.97 percent.

That is a steeper path.

The bank said economic activity was stronger and supply shocks were continuing. Measured inflation remains low because of temporary fiscal measures, while inflation excluding those effects is relatively close to 2 percent.