It also operates a government bond-buying program, which was extended last month by 65 billion Swedish crowns ($7.5 billion), so that total purchases will amount to 200 billion crowns by the end of June 2016.
"Inflation is picking up slowly but should stay well below target, therefore allowing the Riksbank to maintain very accommodative policy," Secker and colleagues said in Morgan Stanley's 2016 outlook report.
The Swedish crown, meanwhile, has slumped by around one-third (34 percent) against the U.S. dollar since the start of 2014 and is seen remaining low.
"The weak SEK should be good for the stock market, given that it has a high degree of oversees exposure, while our preference for cyclicals is also supportive, given their high weighting in the index," said the Morgan Stanley report.
Sweden's economy expanded by a seasonally adjusted 0.8 percent in the third quarter compared to the second quarter in 2015, and 3.9 percent compared to the third quarter of 2014, official statistics from the country showed on Monday.
The 0.8 percent figure was double the 0.4 percent consensus forecast by economists and twice the official flash estimate of EU-wide growth of 0.4 percent.