Riksbank Confirms Readiness to Raise Rates in Fourth Quarter
By Nina Adam
Sweden's central bank Tuesday reiterated its intention to start raising its key policy rate in the fourth quarter, but signaled that it is in no rush to end negative repo rates.
The Riksbank kept the repo rate at a record low of minus 0.5%, and said "that slow repo rate rises will be initiated towards the end of the year."
Inflation in Sweden is running close to the Riksbank's 2% target, supported by higher energy prices and a weaker krona, which is making Swedish imports dearer.
But the Riksbank, in a carefully worded statement, struck a cautious note. It said that measures of underlying inflation, which provide an indication where inflation is heading, "still suggest that inflationary pressures are moderate."
Like in previous meetings, the Riksbank's executive board was split in its decision.
Dominic Chopping contributed to this article.
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