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Time to raise Swedish interest rate - Riksbank

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18:15 CET+01:00
Deputy Riksbank governor Irma Rosenberg said on Friday that the Swedish economy is growing stronger than expected in the last Inflation Report published in early December.

That will boost inflation, she said, and it is now time for the central bank to start hiking its governing interest rate, the repo rate.

"I therefore believe that there is reason, given the information we have today, to now take the first step towards normalising the level of the repo rate and thereby making monetary policy less expansionary. It would also entail a slight reduction in the stimulation effect on the housing market," said Rosenberg in a speech in Sweden.

"All in all, I do not consider there to be reason at present to make any significant revision to our view of future inflation prospects; inflation can be expected to rise gradually towards the target of 2 percent when capacity utilisation increases in the wake of the strong growth rate," she added.


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