The Swedish central bank (Riksbank) surprisingly raised its key interest rate by 1% to 1.75% and warned that it could raise rates again in the future to curb rising inflation.
This latest rate hike is the highest since November 1992, when the Swedish central bank also raised interest rates by 1%.
“Inflation was higher than Riksbanks previous forecast in June and is likely to continue rising this year. The policy rate is likely to continue to be raised over the next six months,” Riksbank said.