Riksbank maintains its rate at 1.75% as expected; assesses that the probability of a rate increase later this year remains; there is considerable uncertainty and developments call for vigilance

INFLATION 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. ECONOMY The outlook for the economy remains largely unchanged. 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. MIDDLE EAST The uncertainty over developments in the Middle East is still considerable. As the war is still going on, the underlying cause of the supply disruptions remains and there is still a risk of inflation becoming too high.