The GBP to SEK exchange rate has been influenced by key developments surrounding the ongoing monetary policies of the Bank of England (BoE) and the Riksbank. Recent statements from the BoE indicate a cautious approach to future rate cuts, suggesting that the pace of easing may slow down. Analysts have noted that the recent cut from 5% to 4.75% reflects an effort to stabilize the UK economy amid revised down GDP growth forecasts for 2025.
Inflation trends are also significant, with a slight uptick to 2.6% in November 2025 being attributed to rising household bills, particularly in energy and water. This combination of monetary policy adjustments and inflationary pressures could give the GBP a foundation to strengthen, depending on forthcoming economic indicators like retail sales.
On the other side, the Swedish Krona has faced its own challenges. The Riksbank's recent decision to cut its policy rate to 1.75% aims to support economic activity in the face of subdued growth forecasts. With the IMF projecting real GDP growth of 1.9% for Sweden in 2025, the outlook remains cautiously optimistic but is tempered by a need for ongoing monetary support.
Currently, the GBP to SEK rate stands around 12.44, which is just 0.7% below its three-month average of 12.53. This stability reflects a range of 12.38 to 12.70 over the past months, indicating a relatively consistent market sentiment. As economists observe the interplay between the UK’s fiscal policies and Sweden's economic measures, the outlook for GBP to SEK will be closely linked to forthcoming economic data and central bank decisions in both countries.
