Riksbank raises its policy rate by 25bps to 2.00%, as expected; If the outlook for inflation and economic activity holds, it is likely that the policy rate will be raised further in the coming year

Policy path: If the outlook for inflation and economic activity holds, it is likely that the policy rate will be raised further in the coming year, in line with the policy rate forecast in September. Inflation: Stronger economic activity combined with cost increases due to supply disruptions mean that inflation is expected to continue rising going forward. Global inflationary pressures remain elevated due to supply disruptions linked to the war in the Middle East. Energy prices have risen further and inflation abroad has increased. Overall, recent developments have largely been in line with the Riksbank's forecast, which implies that economic conditions are strengthening further and will become normal next year. Economy: According to preliminary statistics, GDP increased during the third quarter and employment rose, both in line with the forecast. Sentiment among households declined in October, but among companies it rose further.