STOCKHOLM: Sweden's central bank held its benchmark interest rate unchanged at -0.25% as expected on Wednesday and repeated its plan to tighten policy toward the end of the year or early in 2020, though it highlighted risks in the global economy.
Analysts in a Reuters poll were unanimous in expecting unchanged rates, but several believed the Riksbank could cut its rate path forecast and the Swedish crown strengthened after the decision.
The Riksbank said little had changed since its April meeting when it marginally postponed the timing of its plans to hike rates.
"However, the risks surrounding developments abroad can have a bearing on the prospects for Sweden, which emphasises the importance of proceeding cautiously with monetary policy," the central bank said in a statement.
The Riksbank said at its previous meeting in April it planned to tighten policy toward the end of the year or early next year.
A decade on from the financial crisis, Swedish rates are stuck in negative territory and rate-setters have stressed it is time to move toward normalizing policy.
Growth has held up well and is only expected to slow slightly in 2019. Inflation, the major worry for the central bank, has been on target for the past two years.
But a trade spat between the U.S. and China could weigh on global growth while Brexit looms over an already weak European outlook.
Both the European Central Bank and U.S. Federal Reserve have hinted at easing policy ahead, pressuring the Riksbank to adopt a dovish stance or risk a stronger crown and lower inflation.
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