At least two months ago, Sweden’s central bank raised its benchmark interest rate by 1 percentage point, the biggest hike in almost 30 years.
– Inflation is still too high. This undermines the purchasing power of many people and makes it more difficult for households and businesses to plan their finances. To reduce inflation and protect the inflation target, the board has decided to increase the benchmark interest rate by 0.75 percentage points, expressed in a pers conference from the Swedish central bank.
With banks increasing interest rates further now, the risk of continued high inflation and greater monetary policy tightening in the future is reduced, he said. The bank said it was critical that monetary policy worked so that inflation would come back down and stabilize at around 2 percent within reasonable time.
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In addition, the bank expanded its rate forecasts and opened a rate hike in early 2023. Then the level would be below 3 percent, he said.
Inflation in Sweden hit 10.9 percent in October, the highest in more than 30 years.
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