The Riksbank raised its policy rate by 0.25 percentage points to 2%, citing rising inflation and stronger economic activity. It signaled further increases are likely in the coming year if its forecasts hold.
The Swedish central bank raised its policy rate by 0.25 percentage points to 2% on Wednesday. Rising inflation and stronger economic activity prompted the move.
The decision applies from November 11, 2026. Minutes from the monetary policy meeting will be published on November 10, 2026.
Riksbank signals more hikes if forecasts hold
The Riksbank said inflation is expected to continue rising because of stronger economic activity combined with cost increases from supply disruptions. It indicated it will likely raise the policy rate further in the coming year if current forecasts for inflation and economic activity hold.
Global inflationary pressures remain elevated because of supply disruptions linked to the war in the Middle East. The central bank said energy prices have risen further and inflation abroad has increased.
Swedish inflation readings and outlook
In Sweden, CPIF inflation was 1.5% in September, matching the Riksbank's latest forecast. Temporary fiscal policy measures are holding back inflation, and excluding these effects, CPIF inflation was 3%. The measure that currently best reflects underlying inflation, which also excludes energy prices, was 1.6%, slightly lower than expected.
Looking ahead, the Riksbank expects economic conditions to strengthen further and become normal next year. Stronger activity, cost increases from supply disruptions and a weaker krona this year are expected to push both CPIF inflation and underlying inflation above 2% next year.
Source: Investing.com
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