Today: 7 October 2025
30 June 2023
1 min read

Swedish central bank raises key interest rate, signals further tightening

Inflation in the country stood at 9.7 per cent in May, according to Statistics Sweden…reports Asian Lite News

Sweden’s central bank announced a 25 basis point hike of its benchmark interest rate to 3.75 per cent — a level not seen since 2008.

This is the seventh consecutive rate hike by the Riksbank since May last year, reports Xinhua news agency.

Before this round of interest rate hikes, the policy rate in Sweden had been at zero or sub-zero for more than seven years.

Another increase is also likely to come before the end of the year, the Riksbank said in a statement on Thursday.

Inflation in the country stood at 9.7 per cent in May, according to Statistics Sweden.

Although it is falling, the rate is still “far too high”, the bank said.

The unexpected rapid rise in service prices, which may reflect demand pressures in parts of the Swedish economy, is the main reason for the high inflation.

The weak krona is also contributing to keeping inflation up, the bank added.

“The high inflation is being felt by households with small margins in particular, but is also problematic for the economy as a whole. It is therefore of the utmost importance that inflation falls back to the target of 2 per cent within a reasonable period of time,” the Riksbank said in the statement.

In the bank’s latest forecast, inflation is expected to remain substantially above the target, at 8.9 per cent this year and 4.3 per cent in 2024, before reaching 2.3 per cent in 2025 and 1.9 per cent in 2026.

The Swedish economy is expected to shrink by 0.5 per cent this year, stay level in 2024, and only grow slightly by 1.8 per cent in 2025.

ALSO READ-Sweden boosts defense spending to meet NATO target

Previous Story

Keralite becomes first Indian mayor of Stafford

Next Story

UNSC reform stalemate continues, India voices discontent

Latest from -Top News

OCTOBER 7: Stop the Violence Now, Says Guterres

Guterres recalled that “the attackers brutally killed more than 1,250 Israelis and foreign nationals….reports Asian Lite News UN Secretary-General Antonio Guterres urged an immediate halt to the violence in Gaza, Israel, and

Piyush Goyal Heads to Doha for Trade Talks

During the visit, both sides are expected to discuss the proposed India–Qatar Free Trade Agreement (FTA)….reports Asian Lite News Union Commerce and Industry Minister Piyush Goyal will travel to Doha, Qatar, on

Hamas Heads to Egypt for Gaza Talks

The negotiation will focus on the details of enacting the first phase of the plan…reports Asian Lite News A delegation from the Palestinian group Hamas arrived in Egypt on Sunday ahead of

Multi-alignment, upgraded

With US ties strained and China tense, New Delhi taps Europe’s harder edge for co-development, clean tech and strategic autonomy, writes Manoj Menon India is recalibrating its great-power hedging as frictions with
Go toTop

Don't Miss

Cool hiking destinations for your new year trip plan

The Tadiandamol walk is situated in Karnataka’s Kodagu district, which

‘Sweden will join NATO soon’

He also voiced hope that the process would get finished