Same objectives but different trade-offs? Norges Bank and the Riksbank after the post-pandemic inflation surge
News, Economic Commentaries Inflation in Sweden and Norway has diverged somewhat following the inflation surge in 2022–2023. Despite a higher policy rate in Norway, Norwegian inflation remains above target, while Swedish inflation was below in early 2026. In an Economic Commentary, Deputy Governor Anna Seim and Jakob Almerud of the Monetary Policy Department discuss possible explanations for this development.
The authors note that the policy rate has been higher in Norway than in Sweden, but that Norwegian monetary policy has not necessarily been tighter. The fact that the performance of the real economy in Norway has been stronger than in Sweden rather indicates that it has in practice been less tight in Norway. This may be an indication that the neutral interest rate is higher in Norway than in Sweden. The central banks’ own forecasts also indicate that Norges Bank has placed greater emphasis on stabilising the real economy than the Riksbank. Here, the design of the central banks’ monetary policy mandates may have played a role.
The Economic Commentary is based on a speech given by Anna Seim at Norges Bank’s “Conference on the Monetary Policy Provision” in March 2026.