Bank of Sweden raises interest rates by 50 basis points

2023-04-29 15:00:36

The central bank of Sweden (Riksbank), has increased by 50 basis points the type of interest of reference, which will become 3.5%, in response to persistently high inflation, at the same time that it has anticipated a new rise in the price of money in June or September, although of only 25 basis points.

“Following rapid rate increases over the past year, monetary policy has a restrictive effect on the economy and the executive board assesses that after the April meeting there will be room to adjust the policy rate in smaller steps,” he said. explained the institution.

It has also highlighted that, after a year of rapid increases in interest rates, monetary policy in many countries is contractive, which has led to lower growth in global demand, while concerns regarding certain banks international credit has decreased, but is contributing to somewhat tighter credit conditions, mainly in the United States.

In this sense, due to the considerable uncertainty regarding the evolution of inflation, the oldest central bank in the world, since its origins date back to 1668, has stressed that its monetary policy decisions will be determined by new incoming information. and how to assess its impact on the economic outlook and inflation prospects.