Norges Bank raises its rate to 4.50% while the Riksbank holds at 1.75% but flags a hike before year-end

Two Nordic central banks announced their September decisions on Thursday 24 September 2026, as previewed the week before (preview). Norges Bank raised its policy rate to 4.50%, while the Riksbank held its rate at 1.75% but said increases are now likely to start before the end of the year.

Norges Bank: rate raised to 4.50%

At its meeting on 23 September, Norges Bank's Monetary Policy and Financial Stability Committee raised the policy rate from 4.25% to 4.50%, effective 25 September. The overnight lending rate is now 5.50% and the reserve rate 3.50%.

"Inflation has been above target for several years. By raising the policy rate, we are helping to reduce inflation. It will likely be necessary to keep the policy rate elevated for a time, and the Committee is prepared to raise the policy rate further if needed to bring inflation down to the 2% target within a reasonable time horizon," said Governor Ida Wolden Bache.

The Committee's reasoning:

• CPI inflation has been higher than Norges Bank projected in June
• CPI-ATE, the underlying measure that adjusts for tax changes and excludes energy, has slowed and been lower than projected (this was 3.0% in July; report)
• The krone has strengthened, which will help dampen imported goods inflation
• Wage growth is likely to be lower this year than in 2025, broadly as projected in June
• Capacity utilisation in the Norwegian economy is declining slightly less than the Committee projected in June

The rate path in the new forecast shows the policy rate staying elevated somewhat longer than in June's forecast, before declining. Inflation is projected to slow from next year and reach 2% in 2029. The next monetary policy decision is published on 5 November 2026.

Riksbank: held at 1.75%, but a hike is now more likely

Sweden's Riksbank left its policy rate unchanged at 1.75%. The Executive Board's statement said that "economic activity is stronger and the supply shocks are continuing," so "the policy rate should be raised more going forward than projected in the June forecast, for inflation to stabilise around 2 per cent," and that "if the outlook for inflation and economic activity remains unchanged," rate increases will begin this year.

Behind the decision:

• August inflation was in line with the June forecast; measured inflation is low mainly because of temporary fiscal policy measures, but inflation adjusted for those effects is close to 2%
• GDP grew faster than expected in the second quarter, which the Riksbank partly attributes to temporary factors, though it says the upturn looks broad
• The krona has continued to weaken, and oil, electricity and fuel prices have risen recently
• The new forecast puts the policy rate path at 1.85% in the fourth quarter of 2026, rising to 2.07% in the first quarter of 2027 and 2.38% by the third quarter of 2027

The next Riksbank decision is published on 4 November 2026, with a press conference at 11:00 that day; minutes from the September meeting are due on 30 September.

What it means for NOK and SEK

Norges Bank's hike widens the rate advantage the krone already has over the euro, while the Riksbank's guidance points toward the krona catching up later this year rather than immediately. Oil and gas exports make the krone especially sensitive to energy prices (commodity currencies explained), and Brent has traded above $100 a barrel since early September (report). For the mechanics of how a rate decision moves a currency, see how interest rate decisions move currencies.