The policy rate is raised - the first time in three years
Quick Look
- The Riksbank announces that the key interest rate will be raised by 0.25 percentage points to 2.0 percent from 11 November.
- The announcement is motivated by stronger economic conditions, cost increases and a weak krone.
AI-generated summary
Why It Matters
The Riksbank raises the key interest rate to counteract inflation rising above 2 percent.
The policy rate will be raised by 0.25 percentage points to 2.0 percent from 11 November, the Riksbank announces in a press release.
"The combination of a stronger economic situation and cost increases as a result of supply disruptions, as well as the fact that the krona has weakened this year, is expected to contribute to both CPIF inflation and the more underlying inflation rising above 2 percent next year. The Riksbank has therefore decided to raise the key interest rate by 0.25 percentage points to 2 percent." writes the Riksbank.
If the forecasts are correct, it is estimated that further increases will be made in the next year and that inflation will after some time stabilize around the target of 2 percent. It is the same assessment that was made earlier this autumn, so the so-called interest rate path has not changed.
The last time the interest rate was raised was in September 2023. Then it was raised from 3.75 to 4 percent. Since then, it has only been about reductions.
Wednesday's interest rate hike had no major effects on the markets. The Swedish krona retreats one penny against the US dollar and the euro. At the same time, the Swedish ten-year interest rate rises by 1 point to 3.08 percent, according to TT.
What to Watch
AI outlook — possibilities, not facts
Further interest rate increases in the coming year
Likely · Within months
Open Questions
- Will further increases occur as planned?
