Riksbank forecasts interest rate rise
Paul O'Mahony · 4 May 2007, 10:41
Published: 04 May 2007 10:41 GMT+02:00
The Riksbank’s decision is based on the economic indicators and inflation assessments presented in the February Monetary Policy Report and on the new information on economic developments received since then.
Wages, for example, are expected to increase at a faster rate than previously expected.
The bank did however point out that while current indications suggest a gradual interest rate increase, future economic developments remain uncertain.
"It is therefore also uncertain how the repo rate will develop in the future.
"This will depend as usual on new information on economic developments in Sweden and abroad and the effects this may have on economic activity and inflation in Sweden," said the bank in a statement.