Sweden’s Central Bank Makes Big Approach on Tackling Inflation with 75bps Rate Hike

Sweden’s central bank (Riksbank) resolved to raise the policy rate by 0.75% to 2.50% in the meeting on November 24, giving a signal that it will continue to tighten the monetary policy further next year.

The approach to this big rate hike came after Sweden’s central bank signalled at a monthly meeting in September that it would increase interest by 0.50% this month, and will focus on the monetary policy further next year.

The forecast shows that Sweden’s central bank will likely increase the policy rate further next year.

Consumer prices in Sweden rose 9.3% in October from a year earlier, lower than the 9.7% seen in September.