The decision to increase was expected by many observers, not least as the Riksbank had previously flagged this.
The level is now the highest in Sweden in 15 years.
A further increase is to be expected in the spring, according to the Riksbank.
"Inflation is far too high and has continued to rise," they write in a press release.
Calling for a press conference
The European Central Bank also raised its key interest rate this week by 0.5 percentage points.
At the same time, the US key interest rate is at the highest level in ten years.
At 11.00 the Riksbank will hold a press conference.
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Morgonstudion Photo: Jan Danielsson/SVT