Riksbank's Bunge sees room for more rate hikes as Swedish economy strengthens
Riksbank Deputy Governor Aino Bunge says inflation will exceed target next year and signals that further interest rate increases are likely.
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what happened
Sweden's economy is gaining strength across most sectors, and inflation is expected to climb above the central bank's target next year, Deputy Governor Aino Bunge said on Thursday, according to Reuters. She argued that this trend justifies a tighter monetary policy, and that interest rates will likely keep rising over the coming year.
Bunge added that any future increases must take into account how sensitive households are to borrowing costs.
The Riksbank raised its policy rate this month for the first time since 2023. It pointed to inflation risks linked to the Middle East conflict and a stronger economy, and its meeting minutes showed another hike is likely in the coming months.
why it matters
For markets, the signal suggests the Riksbank is prepared to keep a firm stance, and expectations of further hikes can support the Swedish krona and influence yields on government bonds.
market impact
Krona and Swedish bonds: expectations of more rate hikes support SEK
- Swedish krona pressure up — expectations of further Riksbank rate hikes make the krona more attractive
tags
instruments
sources
- Sweden's economic development justifies toghter monetary policy, central bank's Bunge says — Reuters, 12 November 2026 at 12:16 UTC
- Sweden's economic development justifies tighter monetary policy, central bank's Bunge says — Reuters, 12 November 2026 at 12:29 UTC
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