Wednesday, April 20, 2011

Swedish Central Bank Hikes Rate 25bps to 1.75%

Sweden's Riksbank increased its benchmark repo rate by 25 basis points to 1.75% from 1.50% previously.  The Bank said "The Riksbank has decided to raise the repo rate by 0.25 percentage point to stabilize inflation, close to the target of 2 percent and avoid resource utilization becoming too high,".  Sweden recorded inflation of 2.9% in March (core inflation at 1.5%), above the Bank's official inflation target of 2.0%.  The Bank also raised its inflation forecasts for inflation to 3.2% for 2011 (up from 2.5% previously), and 2.8% for 2012 (2.1% previously).


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