The Central Bank of Sweden (Riksbank) raised its key interest rate by 25 basis points to 3.75% per annum following a meeting on Thursday. Riksbank also indicated its intention to continue raising the rate this year. New data, including a rapid rise in consumer prices in the service sector and the weakening of the Swedish krona, indicate a slower weakening of inflation in the country. In the statement of the central bank, published after the meeting, it says: «In order for inflation to return to the target level of 2% in the foreseeable future, we need to tighten monetary policy even more. We believe that the rate will be raised at least once more this year.» Riksbank confirmed the inflation forecast in Sweden for 2023 at 8.9% and raised the forecast for 2024 from 4% to 4.3%. The Swedish Central Bank also intends to increase the pace of reducing the volume of assets on the balance sheet by increasing the monthly sale of government bonds from 3.5 billion kronor to 5 billion kronor ($462 million). The regulator noted that this could lead to a strengthening of the crown and expand the Central Bank's ability to contain inflation. The exchange rate of the crown against the euro reacted with growth to the publication of the results of the Central Bank meeting, rising from the level of 11.76 to 11.79.
