STOCKHOLM (AP) — Sweden’s central bank raised its key interest rate Thursday, saying that “inflationary pressures in the Swedish economy are still too high,” although there were signs that inflation had begun to fall.
Sweden has been struggling with high inflation — it was 7.5% in August, down from 9.3% in July, but far from the 2% target set by Sweden’s central bank.
Thursday's interest rate increase meant that the policy rate is at the highest level since October 2008, the Swedish news agency TT wrote.
Norway's central bank also raised its policy rate by a quarter-point on Thursday, to 4.25%.
“Persistently high inflation imposes substantial costs on society,” Norges Bank said, adding that ”a somewhat higher interest rate is needed to bring inflation down to target within a reasonable horizon.”The moves came on a busy day of central bank action.
Persons:
Ida Wolden Bache, —
Organizations:
STOCKHOLM, U.S ., TT, Norges Bank Gov, ”, ” Norges Bank, Bank of England, Swiss National Bank, U.S . Federal Reserve
Locations:
Swedish, Sweden, Ukraine, Norway