Forecast warns of coming interest rate hikes

SEB's latest economic forecast holds that the Swedish economy is the fastest growing in Scandinavia. The bank predicts Sweden's gross national product to grow by 4.7 percent this year.

SEB's economists believe that the rapid growth and rising inflation will persuade Sweden's central bank to raise the key interest rate 2 percent, from today's 1.75 percent to 3.75 percent, by the end of 2012.

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