Despite weak economic activity, Sweden's central bank raised its benchmark rate by half-percentage point to curb the weakness in currency and also decided to sell government bonds to reduce the asset holdings at a faster pace.
At the first monetary policy meeting of Erik Thedeen as the governor of Riksbank, the Executive Board lifted the policy rate by 50 basis points to 3.00 percent, with effect from February 15. The board said the policy rate will probably be raised further during the spring.
The central bank started tightening its policy in April 2022, when the policy rate was zero percent.
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by Renju Jaya
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