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Swedish central bank raises interest rates to hit inflation

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The Associated Press

AP communication

Copenhagen, Denmark (AP) —The central bank of Sweden raised key interest rates by 0.5 percentage points on Thursday to counter the rapidly rising inflation and rising prices throughout the economy.

The Bank of Sweden said it has decided to raise the policy rate to 0.75% to prevent high inflation from taking hold.

"The imbalance that arises when demand rises faster than supply is strengthened by Russia's invasion of Ukraine and new pandemic-related regulations in China," the bank said. , Pushed up the prices of other commodities. ..

"High inflation rates in Sweden and abroad are affecting households and weakening purchasing power," he said. "Currently, central banks around the world are tightening monetary policy to cool economic activity and curb inflation."

The US Federal Reserve has raised interest rates three times this year. .. The Bank of England has raised interest rates five times since December, but the European Central Bank plans to raise it for the first time in 11 years next month, with a further increase in September.

The central bank of Sweden said interest rates will be raised gradually in the future, slightly below 2% early next year.

According to official figures, Sweden's inflation rate, which is part of the European Union but does not use the euro, is 7.2%. Consumer prices rose 8.1% year-on-year in 19 countries that shared the euro last month and rose 8.6% in the United States.