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Central Bank Raises Key Repo Rate

Published torsdag 23 februari 2006 kl 12.22
Swedish Central Bank Governor Stefan Ingves

Sweden’s central bank raised its key interest rate on Thursday by 0.25 percentage points to 2.00 percent.

The bank cited continuing firm economic growth both in Sweden and abroad.

This is its second hike this year, a move widely expected by financial markets.

The Riksbank said low inflation figures for January affect inflation in the short term, while the main factor holding back inflation in the longer term is productivity growth. It said it expects underlying inflation to be ”close” to its 2 percent target in 24 months’ time.

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