Sweden’s Riksbank left its benchmark rate at 2.00% at its 20 August meeting, matching economists’ expectations. The board said the recent jump in CPIF inflation to 3% year on year in July was likely temporary and reiterated that price growth should return to the 2% target. While noting economic activity and the labour market remain subdued, policymakers maintained that there is still a reasonable chance of trimming borrowing costs again before the end of the year—an outlook unchanged from the June projection. In Moscow, Bank of Russia monetary-policy chief Andrei Gangan signalled a similarly cautious stance. Speaking to the government daily Rossiiskaya Gazeta, he said the key rate, held at 18%, could be reduced later in 2025 if disinflation accelerates, but stressed that such a move is “not a foregone conclusion.” The central bank’s baseline envisages 6-7% inflation next year and an average policy rate of 16.3–18% over August–December, easing to 12–13% in 2026. Annual consumer price inflation was 8.79% in July, and household expectations climbed to 13.5% in August, underscoring persistent price pressures. The twin announcements highlight how central banks on Europe’s periphery are holding fire after aggressive tightening cycles, balancing still-elevated inflation against fragile growth and leaving themselves room to ease only if data convince them that price risks are fading.