Swedish Riksbank raises key rate by 1%, more than expected


By Geoffrey Smith

Investing.com — Sweden’s central bank raised its key by a full percentage point on Tuesday to 1.75%, setting an ominous precedent for a handful of other central bank meetings later in the week.

The move was larger than expected, with analysts forecasting a rise of just 75 basis points.

“Inflation is too high,” the Riksbank said in a statement. “It undermines household purchasing power and makes it more difficult for both businesses and households to plan their finances.”

Against that backdrop, it warned that it could continue to raise key rates over the next six months.

The Riksbank is the first of a handful of central banks from advanced economies to hold a policy meeting this week, and its move is likely to shock markets ahead of similar decisions from the , the and the , among others.

The Swedish crown peaked higher in the news but quickly bounced back as markets priced in parallel steps from others, such as the Fed and European Central Bank. At 03:40 ET (07:40 GMT), the krone fell 0.2% against both the and the .

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