Riksbank lifts policy rate to 2 % amid expectations of further hikes
The Riksbank raised its policy rate to 2 % on 4 Nov 2026, up from 1.75 %. The central bank indicated another increase is likely in 2027. Swedbank economist Arturo Arques said markets had already priced in the move and forecast a 0.25 % rise in February 2027 followed by a second hike later that year. Swedbank will issue a new economic forecast on 10 Nov 2026, noting that mortgage rates will respond to the policy change.
Key facts
- Arturo Arques predicts a possible 0.25 % rate hike in February 2027.
- A second rate increase is anticipated later in 2027.
- Swedbank’s upcoming forecast will be released on 10 Nov 2026.
- Mortgage rates are affected by policy rates, bank costs, competition and borrowing costs.
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Why it matters
Higher policy rates can raise mortgage costs and affect household spending.
What changed
First published from BBC News and The Local Sweden