Account of Monetary Policy in 2025
News 2025 was a dramatic year in the world, not least as a result of the US administration’s shift in foreign and security policy. However, world trade and the global economy stood up relatively well.
“The Riksbank's monetary policy in 2025 was very much about how we would secure the inflation in line with the target that we had achieved in 2024, while supporting the economic recovery. But although we saw increasingly clear signs of an upturn, the economy remained unexpectedly weak for a long time, and we were had to gradually postpone the timing of the recovery,” the Executive Board writes in a comment.
A question that is important and difficult to assess that was discussed extensively by the Executive Board was whether the elevated inflation at the beginning of the year was temporary or whether it was the start of a period in which inflation would once again be lastingly above the target. If the latter were judged to be the case, there would be reasons to hold off on further monetary easing.
“However, we assessed that the elevated inflation was largely due to transitory factors, and that the underlying inflationary pressures were in line with the target. We therefore decided to cut the policy rate three times during the year to provide further support to the economic recovery.”
The assessment that the elevated inflation was due to temporary factors proved to be correct. In December, CPIF inflation, both including and excluding energy, was again close to 2 per cent.
“Overall, against this background, we believe that target fulfilment was relatively good in 2025.”
Read more about last year's monetary policy decisions and the reasons behind them in the Account of Monetary Policy.
About the Account of Monetary Policy
Every year, the Riksdag Committee on Finance examines and evaluates the monetary policy conducted by the Riksbank during the preceding years. The Account of Monetary Policy provides a basis for that evaluation.