Sveriges Riksbank raised its policy rate by 0.25 percentage points to 2 percent, taking effect from 11 November 2026, and said additional increases are likely over the coming year if the inflation and economic activity outlook holds.
Inflation still below target
KPIF inflation stood at 1.5 percent in September, in line with the Riksbank’s latest forecast. Excluding temporary fiscal measures, which are currently holding the headline figure down, KPIF inflation was 3 percent. An underlying measure that strips out energy prices came in at 1.6 percent, still below the central bank’s 2 percent target.
“If the inflation and economic activity outlook holds, it is likely that the policy rate will be raised further over the coming year, in line with the policy rate forecast from September,” the Riksbank said in its press release. Globally, inflation remains elevated because of supply disruptions tied to the war in the Middle East, and energy prices have risen further.
Growth firms, krona weakens
Preliminary statistics point to GDP growth in the third quarter and a rise in employment. Household sentiment fell in October even as business sentiment rose further over the same period. The krona has weakened so far this year.
The Riksbank flagged risks in both directions: supply disruptions could persist, growth could outpace expectations, and the labour market recovery remains uncertain. External demand could also weaken, with geopolitical tension, concerns about AI investment and strained public finances in some countries cited as factors.
Governor Erik Thedéen and Åsa Olli Segendorf, head of the monetary policy department, held a press conference the same day at 11:00. Minutes from the meeting are due on 10 November 2026, with the next monetary policy report and updated forecasts set for 16 December 2026.
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