Sweden’s growth is expected to slow in 2019, with material downside risks from the global economy and domestic demand. From an estimated 2.3 percent in 2018, growth is projected to slow to 1.2 percent in 2019 as dwelling investment falls, consumption growth cools, and weaker global growth impacts exports. A data-dependent approach to monetary policy is appropriate. Although underlying inflation is expected to rise gradually, uncertainties around this outlook have widened. Deferring further monetary tightening is appropriate, pending clearer signs that inflation outlook is consistent with durably meeting the inflation target.