At its meeting today (November 24), the Swedish central bank (Riksbank) raised the key interest rate by 0.75% to 2.50%, signaling that it will tighten monetary policy further next year.
The latest move came after the Swedish central bank signaled at its September meeting that it would raise interest rates by 0.50% this month and tighten monetary policy further early next year.
The Swedish central bank said in a statement that the risk of the current high inflation rate becoming entrenched remains high. And monetary policy measures to ensure that inflation is brought down toward the 2% target within a reasonable period of time are crucial.
The forecast shows that the Swedish central bank will raise key rates further at the beginning of next year, bringing interest rates slightly below the 3% mark.