The Riksbank said ‘several risks’ could affect its economic outlook, including supply disruptions and the possibility of Sweden's economy growing faster than expected. (LinkedIn pic)STOCKHOLM: Sweden's central bank raised its benchmark interest rate by a quarter point to 2% on Wednesday in a bid to combat inflation, and said further increases were likely.
The Riksbank said stronger economic activity, cost increases due to supply disruptions linked to the war in the Middle East, and a weaker krona meant inflation was expected to rise above the bank's 2% target.
"If the outlook for inflation and economic activity holds, it is likely that the policy rate will be raised further in the coming year," the Riksbank said in a statement after the widely expected increase.
