Policy rate rises to 2.0 percent as inflation risks build
Sveriges Riksbank raised its policy rate by 25 basis points to 2.0 percent with unanimous support. The Board retained its September rate outlook, citing stronger demand, persistent supply disruptions and inflation above target in 2027.
Five votes for higher rates
Governor Erik Thedéen and deputies Aino Bunge, Per Jansson, Anna Seim and Göran Hjelm all supported raising the policy rate from 1.75 to 2.0 percent.
The Board retained September's forecast of further increases, conditional on the outlook holding.
Members cited a broadening recovery, persistent Middle East supply disruptions and the krona's earlier depreciation.
September CPIF inflation reached 1.5 percent, up from 0.7 percent in August.
Excluding temporary fiscal measures, it was 3.0 percent; excluding energy as well, it was 1.6 percent.
The Riksbank forecasts both CPIF and underlying inflation above its 2 percent target in 2027.
Thedéen said incoming information supported GDP growth of nearly 3 percent in 2026.
December remains an option
Jansson said the September path envisaged just under two further increases and did not rule out another increase in December.
Bunge favoured evaluating each step, warning that weaker household demand would reduce firms' scope to raise prices.
Hjelm identified persistent supply costs as the main reason to act now; Seim stressed protecting purchasing power before inflation became entrenched.
New forecasts are due in December.
Members also discussed weaker household confidence, uncertain employment gains, debt-financed AI investment and strained foreign public finances.
Timing remains conditional
The Board's agreement on an increase did not extend to a fixed timetable for subsequent decisions.
Jansson kept December open, while Bunge stressed the recovery's sensitivity to higher rates.
Thedéen said weaker demand and slower underlying inflation would reduce the need for further increases.