Adds central bank comment in paragraph 2

STOCKHOLM, May 7 (Reuters) - Sweden's central bank kept its policy rate unchanged at 1.75% as expected on Thursday and said the risk that the war in the Middle East will lead to higher inflation had increased somewhat.

"The current level of the policy rate gives the Riksbank a good initial position to adjust monetary policy if required to safeguard the inflation target," the central bank said in a statement.

Analysts in a Reuters poll had been unanimous in seeing no change in the policy rate this time.

The median forecast in the poll was for rate-setters to hike first at the start of 2027, though markets see a high chance of tighter policy by year-end. 0#RIBA=