STOCKHOLM, 28 April (Xinhua) – On Thursday, the Riksbank, Sweden’s central bank, raised its key interest rate from zero to 0.25 per cent from 4 May to counter rising inflation.
The bank’s executive board aims to gradually raise the exchange rate to “slightly below 2 percent” two or three more times this year, according to a press release.
The Riksbank justified the move by reminding that inflation has risen to its highest level since the 1990s and that it is expected to remain high “for some time”.
According to the Riksbank’s forecasts, Sweden’s gross domestic product (GDP) will grow by 2.8 per cent in 2023 and 1.4 per cent in 2023 and 2024.
Sweden’s 12-month inflation was 6.1 per cent in March, Statistics Sweden states.