The Riksbank leaves the repo rate unchanged at minus 0.25 percent. The fact that the development was broadly in line with the Riksbank's forecast indicates that the current communication on monetary policy in the near future communicated in the coming six months announces the authority.

As before, the forecast indicates that the interest rate will be raised towards the end of the year or early next year.

The US-China trade conflict is causing concern

In its press release, the Riksbaken also writes that GDP growth in the rest of the world has slowed down and is expected to be roughly in line with a historical average in the coming years.

They also see that the US-China trade conflict and the uncertainty surrounding Britain's exit from the EU are causing concern. Because of this, the Riksbank emphasizes that one must be careful in its monetary policy.

Swedish economy in a quieter phase

The authority also notes that the Swedish economy has entered a calmer phase. GDP growth will be a little lower than projected and the slowdown in the labor market appears to be going somewhat faster than expected.

However, the economy remains strong. Inflation has been close to the target of 2 per cent since the beginning of 2017 and the latest inflation outcomes have been slightly higher than expected if anything.

The decision on the repo rate level will apply from September 11, 2019.