MNI BRIEF: Riksbank Holds In Nov, Sees Policy Pause

The Riksbank left its policy rate at 1.75% at its November meeting as widely anticipated and stated that the rate was expected to stay at that level for some time to come.

The bank's Executive Board's summary stated that the economic outlook was largely unchanged from its September forecast with inflation falling as predicted. The September forecast showed the policy rate troughing at 1.75% and holding close to that for three years and there was no new forecast in November, as it is an interim meeting. (see MNI RIKSBANK WATCH: Hold Likely, With High Bar To Another Cut )

The board cited high uncertainty with political risks abroad and expansionary fiscal policy at home. The labour market has been showing some signs of improvement and there were signs of economic activity picking up, the board stated.