What is the policy rate?

The Riksbank’s policy rate is our main monetary policy tool. By raising or cutting the policy rate, the Riksbank can affect other interest rates in Sweden, which affects demand in the Swedish economy and thereby inflation.

The current policy rate

Policy rate

Applies from 15 May 2024

Graph and table

The policy rate affects inflation

The policy rate is the rate that governs which rates the banks can deposit in and borrow money from the Riksbank. The banks' deposit and lending rates at the Riksbank in turn affect the banks' interest rates on loans and savings accounts. 

A higher policy rate leads to the banks in turn raising their interest rates. When bank interest rates rise, people and businesses do not buy as much as it becomes more expensive to borrow money. Instead, you get higher interest rates if you save the money in a bank. As people and companies buy fewer things, prices do not rise - inflation falls. Cutting the policy rate leads to banks lowering their interest rates. Lower bank interest rates mean that people and companies buy more - inflation rises.

Read more: How monetary policy affects inflation

Read more - Monetary policy decisions

The Executive Board of the Riksbank normally makes decisions on monetary policy eight times a year. The interest rate decision is announced in conjunction with the publication of the Monetary Policy Report or the Monetary Policy Update, which describes the deliberations taken by the Riksbank in the process of deciding upon an appropriate monetary policy. The forecast for the policy rate is presented in the Riksbank’s Monetary Policy Report.

The policy rate back in time

The page “Policy rate, borrowing and lending rate” includes a history of the policy rate from 2012 and on. If you are looking for statistics for the policy rate from its introduction in 1994, go to the page “Search interest rates and exchange rates” and look under “Riksbank interest rates”.


How does the Riksbank's policy rate work?

How does the policy rate influence the economy and the level of inflation?

View the movie How does the Riksbank's policy rate work?
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Updated 25/10/2022

What is monetary policy?

What is monetary policy and how does it affect me?

View the movie "What is monetary policy?"