September 21, 2022
In response to strong inflation, Sweden’s central bank increased its benchmark rate at a faster rate than anticipated.
The key interest rate will be increased by 1 percentage point to 1.75 percent by the Riksbank Executive Board. Markets mostly anticipated a rate increase of 75 basis points.
The board stated that in order to get inflation back to the target, monetary policy needed to be tightened up further more. According to the estimate, there will be another increase in the policy rate during the next six months.
Policymakers committed to modifying monetary policy as needed to return inflation to the target within an acceptable time frame.
The board noted that both individuals and companies are feeling the effects of rising prices and higher interest rates. However, the board warned that if inflation stayed at its current high levels, the economy would suffer significantly more.
Source: RTT News
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