Riksbank raises interest rate to 2%, first hike since 2023

What happened. Sweden's central bank, the Riksbank, raised its policy rate by 0.25 percentage points, from 1.75% to 2%. The Executive Board decided at a meeting on November 3 and announced it on November 4. The new rate applies from November 11, 2026.

Why now. The Riksbank says global inflation pressure stays high because of supply disruptions linked to the war in the Middle East. Energy prices have risen further and inflation abroad has increased. The bank expects stronger economic activity, cost increases from the disruptions and a weaker krona this year to push both CPIF inflation and underlying inflation above 2% next year. CPIF is the Swedish consumer price index with a fixed interest rate. It is the measure of the bank's 2% target.

Inflation today is below the target. CPIF was 1.5% in September. The bank says temporary fiscal policy measures hold it down. Without them it was 3%. The measure that best reflects underlying inflation, which also leaves out energy, was 1.6%, slightly lower than expected. Aftonbladet's economics commentator links the temporary measures to the halved VAT on food and the lower tax on petrol. He also doubts that a rate hike helps against electricity and oil prices. That is the commentator's view, not the bank's.

What comes next. If the outlook for inflation and the economy holds, the Riksbank says it is likely to raise the rate further in the coming year, in line with its September forecast. It expects inflation to settle around 2% after a while. Risks it names: the causes of the supply disruptions remain, the economy could grow faster than expected, the labour market recovery is uncertain, and global demand could weaken (geopolitical uncertainty, concerns about AI investments, weak public finances in some countries).

How long since the last hike. Aftonbladet writes that the previous hike was in September 2023, to 4.0%. The rate was then cut step by step. The Riksbank's decision document says the rate had been unchanged since September 2025.

What we do not know. Whether and when the next hike comes. How fast banks pass the rise on to loans and savings. Whether the hike cools prices that are rising because of energy, which Aftonbladet's commentator doubts.

Confirmed facts

• The Riksbank raised its policy rate by 0.25 percentage points to 2%.^[1][2]
• The new rate applies from November 11, 2026.^[1][2]
• The decision was taken at the meeting on November 3, 2026 and announced on November 4.^[2]
• The rate had been unchanged since September 2025.^[2]
• It is the first hike since September 2023, when the rate went to 4.0%. It was then cut step by step.^[3]
• CPIF inflation was 1.5% in September, 3% without temporary fiscal policy measures, and the underlying measure that also excludes energy was 1.6%.^[1]
• The Riksbank cites supply disruptions from the war in the Middle East, higher energy prices, stronger activity and a weaker krona, and expects inflation above 2% next year.^[1]
• If the outlook holds, a further rate rise in the coming year is likely, in line with the September forecast.^[1][3]
• The minutes will be published on November 10, 2026 and the next Monetary Policy Report on December 16, 2026.^[1]
• Aftonbladet's economics commentator links the low September CPIF to the halved food VAT and lower petrol tax, and doubts that the hike will affect electricity and oil prices.^[3]

Implications

• ConfirmedThe Riksbank says further hikes are likely if its outlook holds.
• ConfirmedInflation is below the target now, and the bank explains the hike by its expectations for next year.
• Our readingSwedish banks will most likely pass the higher rate on to loans and savings. That is our reading.

Still unknown

• Whether and when the next hike comes
• How fast banks pass the rise on to loans and savings
• Whether the hike cools prices that are rising because of energy

Who it affects

Sweden, Europe, Global. People with Swedish loans or savings, krona investors, readers who follow central banks

Sources

1. Sveriges Riksbank: Policy rate raised to 2 per cent November 4, 2026 · official
2. Sveriges Riksbank: Monetary Policy Decision November 2026, Policy rate decision November 4, 2026 · official
3. Aftonbladet: Riksbanken höjer styrräntan – första gången på tre år November 4, 2026 · media