--- title: Sweden, Norway and the Bank of England Set Interest Rates This Week as the Energy Shock Pushes Up Inflation description: The Bank of England, Riksbank and Norges Bank set rates this week as energy prices push inflation up. Dates, current rates and what is expected. author: Dr Marina Nani (Editor-in-Chief) date: 2026-11-02T12:40:08.234Z updated: 2026-11-02T12:40:08.248Z canonical: https://www.sovereignmagazine.com/article/interest-rate-decisions-this-week-boe-sweden-norway image: https://cdn.nanimediahouse.com/pexels-5277966.webp categories: Economy, Finance content_type: Analysis publication: Sovereign Magazine schema_type: Article --- Europe's central banks are raising interest rates again. This week the Bank of England is expected to make its first increase in more than three years, Sweden's Riksbank sets its rate on Wednesday and Norway's central bank sets its rate on Thursday, as energy prices driven by the war with Iran keep inflation above target across the continent. Here is the week's calendar: - **Tuesday 3rd November:** Reserve Bank of Australia, current cash rate 4.60% - **Wednesday 4th November:** Sweden's Riksbank, current policy rate 1.75%, and the first estimate of October inflation in the euro area - **Thursday 5th November:** Norges Bank at 10:00 Norwegian time, current policy rate 4.50%, and the Bank of England at noon UK time, current Bank Rate 3.75% ## Bank of England Rate Decision on 5th November Bank Rate stands at 3.75%. In a Reuters poll taken between 12th and 14th October, 54 of 63 economists expected the Monetary Policy Committee to raise it by a quarter of a percentage point to 4.0% on Thursday, ending a run of more than three years without an increase. No majority expected a further rise this year, though 30 of 61 saw another increase in the first three months of 2027. UK inflation rose to 3.5% in September from 3.1% in August, the highest rate in almost a year, the Associated Press reported, with motor fuel prices up 30% on a year earlier. The energy price cap set by the regulator Ofgem rose 4% to £1,723 a year for a typical household from 1st October. If you have a mortgage, our guide explains [what the first rate rise in three years means for fixed and tracker deals](https://www.sovereignmagazine.com/article/bank-of-england-rate-rise-november-2026-mortgage). ## Riksbank Decision on 4th November Sweden's central bank publishes its decision and a new monetary policy update on Wednesday 4th November. Its policy rate stands at 1.75%, far below the rates in Britain and Norway. When the Riksbank held the rate in June, Governor Erik Thedeen put the chance of a rise by the end of the year at about even, Reuters reported. A rise this week would make Sweden the latest European economy to reverse course on rates in 2026. ## Norges Bank Decision on 5th November Norges Bank raised its policy rate in May, then again in September by a quarter of a point to 4.50%, Reuters reported. Governor Ida Wolden Bache said at the time that the bank was ready to raise again if needed, though most economists saw 4.50% as the peak. The bank publishes no new forecasts on Thursday, with its next full monetary policy report due on 17th December. ## ECB and Eurozone Inflation The European Central Bank has no meeting this week, but its numbers frame every other decision. The ECB raised its deposit rate twice this year, to 2.25% in June and to 2.50% in September, and [held all three of its rates](https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.mp261029~9a493adf17.en.html) on 29th October, naming rising energy prices as the main risk to inflation. Inflation in the euro area reached 3.8% in September, up from 3.2% in August, according to Eurostat. Energy prices were 18.9% higher than a year earlier and accounted for 1.7 percentage points of the total. Eurostat publishes its first estimate for October on Wednesday. ## The 2026 Energy Shock Behind Higher Rates The war with Iran began on 28th February. Within days Iran had struck energy sites and tankers in the Gulf, the Strait of Hormuz was declared closed and Qatar stopped producing liquefied natural gas, Reuters reported. The strait normally carries about a fifth of the world's liquefied natural gas. By mid-April physical cargoes of crude oil had reached a record of close to $150 a barrel, and diesel in northwest Europe cost about $170 a barrel against $102 before the war, according to Reuters. Brent crude stood at $113.43 a barrel on 30th October, the AP reported. Higher energy bills feed into the prices of food, transport and almost everything else. Central banks raise rates to stop that first jump in prices from settling into lasting inflation, at the cost of higher borrowing costs for households and companies. ## Rate Rises Around the World in 2026 Europe is part of a wider turn: - **Federal Reserve:** lifted the range for its main rate by a quarter of a point to 3.75% to 4.00% in September, its only change this year - **Bank of Canada:** raised its rate from 2.25% to 2.50% on 28th October, its first rise since mid-2023, with energy costs pushing inflation to 3.1%, Reuters reported - **Reserve Bank of Australia:** raised its cash rate to 4.60% from 30th September, its fourth rise of 2026, and meets again on Tuesday - **Bank of Japan:** raised its rate to about 1.25% in September ## Poland's Central Bank Governor Faces a Vote In Poland, the political fight over the central bank continues. The Sejm, the lower house of parliament, plans to vote in the second half of November on whether to send National Bank of Poland Governor Adam Glapiński before the State Tribunal, Reuters reported on 20th October. The charges include financing the state indirectly through bond purchases in 2020 and 2021 and politicising the bank. Glapiński denies them. His term runs until June 2028. ## Questions About Interest Rates This Week **Q: Will interest rates go up in November?** The Bank of England announces its decision on Thursday 5th November 2026. In a Reuters poll taken in mid-October, 54 of 63 economists expected it to raise Bank Rate from 3.75% to 4.0%, which would be the first increase in more than three years. UK inflation of 3.5% in September, driven by higher energy prices, has added to pressure for a rise. **Q: What is the next Bank of England interest rate prediction?** Most economists polled by Reuters in October 2026 expected Bank Rate to rise to 4.0% in November and then stay there for the rest of the year, though about half saw a further rise in early 2027. Financial markets were pricing several more quarter-point increases by the end of 2027. Forecasts change with each new inflation figure. **Q: Will interest rates go back to 3%?** A return to 3% would need inflation to fall back towards the Bank of England's 2% target. In autumn 2026 Bank Rate stood at 3.75%, and most economists polled by Reuters expected the next move to be a rise, with energy prices keeping inflation above target. The Bank cuts rates when it judges that inflation is on track to return to its target.