The Swedish central bank is ready to take action at any time during the conflict in the Middle East.

The Swedish central bank maintained its interest rate unchanged, and the interest rate path also remains unchanged, but it is ready to take action when necessary. The central bank expects to keep interest rates unchanged for a period of time, while developments in the Middle East require it to remain vigilant. "In an environment of increasing uncertainty, the central bank is taking a wait-and-see stance," wrote Torbjorn Isaksson, Chief Analyst at Nordea Bank. "A rate cut is temporarily not being considered, but if energy prices soar, it is possible to raise rates." However, Isaksson noted that it is important to remember that Sweden currently faces low inflationary pressures. Therefore, energy prices would need to increase significantly for inflation to rise to uncomfortably high levels. He said, "We maintain our forecast that the Swedish central bank will keep interest rates unchanged at 1.75% throughout the year 2026."