AP

Sweden’s central bank hikes key interest rate by full point

Sep 20, 2022, 1:53 AM | Updated: 8:39 pm

COPENHAGEN, Denmark (AP) — Sweden’s central bank on Tuesday raised its key interest rate by a full percentage point to combat the highest inflation in more than 30 years, the first of a series of large hikes expected from central banks worldwide this week.

Riksbanken said inflation has risen rapidly — to 9% in August, the highest level since 1991 — “undermining households’ purchasing power and making it more difficult for both companies and households to plan their finances.”

The bank raised its policy rate to 1.75% and said it will keep tightening over the next six months as it tries to bring inflation back to its target of 2%. In making the big hike, it pointed to other central banks rapidly raising rates as consumer prices soar.

The U.S. Federal Reserve is expected Wednesday to carry out a large increase of three-quarters of a point for the third consecutive time, followed Thursday by the Bank of England, whose half-point hike last month was its biggest in 27 years and is forecast to make another.

“During the pandemic, global imbalances arose between supply and demand,” Sweden’s central bank said. “Russia’s war in Ukraine has pushed up prices even further on several important commodities and created serious disruptions on the energy markets in Europe, which has caused electricity and gas prices to rise to very high levels.”

It added that “the good economic activity in Sweden has also contributed.”

Sweden is part of the European Union but does not use the euro currency, so it is not part of European Central Bank.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Houston storms cause widespread damage on Friday...

Associated Press

Some in Houston facing no power for weeks after storms cause widespread damage, killing at least 4

Houston storms cause widespread damage on Friday, May 17. Thunderstorms hit the southeastern part of Texas, killing at least four people.

7 hours ago

Man gets 30 years in prison for attacking ex-Speaker Nancy Pelosi’s husband with a hammer...

Associated Press

Man gets 30 years in prison for attacking ex-Speaker Nancy Pelosi’s husband with a hammer

A man has been sentenced to 30 years in prison for attacking the husband of then-House Speaker Nancy Pelosi with a hammer.

7 hours ago

audio from President Joe Biden’s interview about classified documents blocked...

Associated Press

GOP advances Garland contempt charges after White House exerts executive privilege over Biden audio

The move to release audio from President Joe Biden’s interview about classified documents was blocked on Thursday by the White House.

1 day ago

Asylum processing for new migrants: Changes could come soon...

Associated Press

The Biden administration is planning more changes to quicken asylum processing for new migrants

The Biden administration is planning to quicken the asylum processing for new migrants as an interim step rather than an executive order.

2 days ago

Record-setting rally for U.S. stocks reflects inflation slowing down...

Associated Press

Stock market today: Asian shares advance after another round of Wall St records

The S&P 500 jumped 1.2% to top its prior high set a month and a half ago. This move reflects a record-setting rally for U.S. stocks.

2 days ago

This combo image shows President Joe Biden, left, Jan. 5, 2024, and Republican presidential candida...

Associated Press

Biden and Trump agree to hold presidential debates in June and in September

President Joe Biden and former President Donald Trump have agreed to hold two campaign debates, on June 27 hosted by CNN and on Sept. 10 hosted by ABC.

2 days ago

Sponsored Articles

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

Sweden’s central bank hikes key interest rate by full point