Riksbank raised interest rates to 2 percent
05 July 2011
Sweden's central bank raised its key lending rate for the seventh consecutive time, as it seeks to rein in rising inflation, and kept its forecasts for the rate in coming years unchanged. The Riksbank raised the repurchase rate to 2% from 1.75%, in line with market expectations, and held its prediction for the average rate in the third quarter of 2012 at 2.9%, and the average rate in the third quarter of 2013 at 3.4%. "The Swedish economy is growing at a good rate, although international developments are marked by uncertainty," the Riksbank said. "Underlying inflationary pressures remain low, but are expected to increase as economic activity strengthens." It added that the repo rate needs to be raised to "stabilize inflation around the target of 2% and resource utilization around a normal level."