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Sweden's Central Bank

Central Bank Too Zealous in Raising Interest Rates

A new report agrees with critics who say the Swedish Central Bank has been too zealous in fighting inflation with increased interest rates.

The study, by experts from Columbia University and the Massachusetts Institute of Technology, was commissioned by the Swedish Parliament.

While it says overall the Bank of Sweden has done well in keeping inflation under its target of 2 percent, it points out that it has fallen now to 1.3 percent year-on-year.

Inflation in Sweden has been under 2 percent since April 2003, yet in recent months the central bank has continued to raise interest rates.

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