Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Sweden's Riksbank Raises Key Rate by 1%, More Than Expected

Published 2022-09-20, 04:10 a/m
Updated 2022-09-20, 04:10 a/m
© Reuters.

© Reuters.

By Geoffrey Smith 

Investing.com -- Sweden's central bank raised its key interest rate by a full percentage point to 1.75% on Tuesday, setting an ominous precedent for a handful of other central bank meetings later in the week.

The move was larger than expected, with analysts having predicted an increase of only 75 basis points.

"Inflation is too high," the Riksbank said in a statement. "It is undermining households’ purchasing power and making it more difficult for both companies and households to plan their finances."

Against that backdrop, it warned it may keep raising the policy rate for the next six months.

The Riksbank is the first of a handful of central banks from advanced economies to hold a policy meeting this week, and its move is likely to spook markets awaiting similar decisions from the U.S. Federal Reserve, the Bank of England and the Swiss National Bank, among others.

The Swedish krona spiked higher on the news but quickly retraced, as markets priced in parallel steps from others such as the Fed and the European Central Bank. By 03:40 ET (07:40 GMT), the krona was down 0.2% on the day against both the dollar and the euro.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.