Sweden's central bank kept its key rate unchanged at 2.25% as expected today amid widespread uncertainty about how global trade tensions will affect the economy and inflation.
Analysts in a Reuters poll had been unanimous in seeing the Riksbank sticking to its wait-and-see stance given the opaque outlook, inflation that is still running a bit too hot and mixed signals about the strength of the economy.
"The Executive Board assesses that monetary policy is currently well-balanced and that it is wise to await further information to obtain a clearer picture of the outlook for economic activity and inflation," the central bank said in a statement.
Rate-setters said that while there was a significant uncertainty about the outlook, it was likely inflation would be lower than that it will be higher than in the March forecast.
This could suggest a slight easing of monetary policy going forward, they added.
Swedbank said worries over the economy would push the Riksbank to cut rates next month.
"The Riksbank will resume cutting the policy rate already at the next meeting in June, followed by a cut in September to 1.75%," Swedbank said in a note.
Households and businesses in Sweden have already felt the chill from what Finance Minister Elisabeth Svantesson called a "new economic era" ushered in by US President Donald Trump's tariff policies.
But how deep the downturn will be and how long it will last is uncertain and parts of the economy, like the manufacturing sector, are showing resilience.
While many economists agree that tariffs are likely to keep a lid on prices, the US Federal Reserve - which kept its key rate on hold last night - warned that risks that inflation could pick up were increasing.
US inflation could spill over into the wider global economy.
Nordea said it expected no change in the Riksbank's policy rate going forward.
Norway's central bank left its key rate on hold today, while the Bank of England also cut UK rates earlier today.
The Riksbank last eased policy in January when it said that it had probably done enough to boost a sluggish economy.
