AUD/SEK hovers above 2-week low, cenbank meetings ahead

The AUD/SEK currency pair hovered above a 2-week low of 6.6250 on Monday ahead of the outcome of the Reserve Bank of Australia’s and Sweden’s Riksbank policy meetings.

The Reserve Bank of Australia is expected to keep its cash rate intact at 4.35% at its June 16th meeting.

In May, the RBA raised borrowing costs by 25 basis points to 4.35%, as eight members backed the hike, while one policy maker preferred to hold rates at 4.10%.

In its Monetary Policy Statement, the RBA said inflation had surged sharply in H2 2025. It pointed to several drivers, including capacity constraints, higher fuel and commodity prices, and the Middle East conflict.

The Australian central bank has also indicated that further rate hikes are anticipated. Its projections point to a policy rate of 4.70% by the end of 2026, with no reductions expected until 2028.

Meanwhile, Sweden’s Riksbank is expected to leave its key policy rate intact at 1.75% at its June 17th meeting.

In May, policy makers noted that the risk of the war in the Middle East leading to higher inflation had risen.

Sweden’s annual consumer inflation has picked up to its highest level since October 2025 in May.

Consumer prices rose 0.8% year-on-year in May, rebounding from a 0.1% drop in April and exceeding the market forecast of a 0.5% rise.

Sweden’s consumer price index with a fixed interest rate (CPIF), Riksbank’s target variable for inflation, went up 1.5% year-on-year in May, again surpassing expectations of a 1.3% increase.

Inflation has remained below target, while recent macro data have come in significantly weaker than the Riksbank’s March projection.

As economic activity remains subdued, the central bank had said it saw room to wait for a clearer assessment of the impact of the Middle East conflict and the supply shocks associated with it.

The AUD/SEK currency pair was last down 0.17% on the day to trade at 6.6278.