Riksbank Lifts Policy Rate to 2.50% From 1.75% and Raises Rate Path
By Dominic Chopping
STOCKHOLM--Sweden's central bank on Thursday lifted its key
policy rate to 2.50% from 1.75% and raised its rate path as it
continues to fight stubbornly high inflation.
A majority of economists polled by The Wall Street Journal
before the decision had expected a 75 basis points hike to
The Riksbank now expects the policy rate to peak at around 2.8%
in 2023, from around 2.5% previously, remaining at that level
throughout 2024 and 2025.
The central bank had previously signalled it would bring the
policy rate down to around 2.4% at the end of 2024.
"The forecast shows that the policy rate will probably be raised
further at the beginning of next year and then be just below 3%,"
the central bank said.
The risk of the current high inflation becoming entrenched is
still substantial, and it is therefore "very important" that
monetary policy acts to ensure inflation falls back and stabilises
around the 2% target within a reasonable time, it added.
By raising the policy rate more now, the risk of high inflation
in the longer term is reduced, as is the risk of even greater
monetary policy tightening further ahead, it said.
Write to Dominic Chopping at firstname.lastname@example.org
(END) Dow Jones Newswires
November 24, 2022 04:22 ET (09:22 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.