Riksbank raises interest rates

Riksbank raises interest rates
Photo: Riksbanken
Sweden's Riksbank has decided to raise its most important interest rate, the repo rate, by 0.25 percentage points to 3.50 per cent.

The bank also made the assessment that the repo rate will need to be around 4 per cent at the end of the year. Over the coming years it is probable that the interest rate will need to be raised further.

Swedbank’s estate agency, Fastighetsbyrån, predicts that the latest interest rate hike will slow down the rise in house prices.

“Today’s increase will cool down the housing market somewhat,” said Fastighetsbyrån’s CEO Per Johnler in a statement.

The Riksbank expects the new rate to help ensure inflation is in line with the target from next year and onwards, and that production and employment develop in a stable manner.