Sweden's Central Bank Raises Main Interest Rate

The so called Repo rate was raised by a quarter percentage point to 4.25 percent.

As the executive board of the central bank explained, inflation was expected to be high, while economic activity remained good. The increased rate was going to lead to a balanced development in production and employment, the executive board added.

However, there was still considerable uncertainty regarding the economic outlook and inflation prospects.

Source: By Sveriges Radio 2008