Sweden’s big interest rate hike follows other central banks

Nov 24, 2022, 4:10 AM | Updated: 5:11 am

STOCKHOLM (AP) — Sweden’s central bank followed other central banks in undertaking a big increase to its key interest rate to combat inflation, saying Thursday that high prices are undermining people’s purchasing power and making it tough for households and companies to plan their finances.

Riksbanken said the hike of three-quarters of a percentage point pushes the key rate to 2.5% — the highest in 14 years, according to Swedish news agency TT — and is meant “to bring down inflation and safeguard the inflation target.”

Consumer prices rose 9.3% in October from a year earlier in the European Union country, lower than the 9.7% seen in September.

The big rate increase in Sweden, which does not use the euro currency so it is not part of the European Central Bank’s decision-making, builds on the jumbo full percentage point hike made in September.

It comes as the ECB, U.S. Federal Reserve and other central banks also have made large rate increases to fight inflation that has been squeezing people around the world.

In Sweden, the forecast “shows that the policy rate will probably be raised further at the beginning of next year and then be just below 3%,” the bank said.

“It is still difficult to assess how inflation will develop and the Riksbank will adapt monetary policy as necessary to ensure that inflation is brought back to the target within a reasonable time,” the bank said in a statement.

The decision on the policy rate will apply with effect from Nov. 30.

___

This story has been corrected to show that the rate of 2.5%, not the rate increase, is the highest in 14 years.

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 This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - A flu vaccine is readied at the L.A. Care and Blue Shield of California Promise Health Plans...
Associated Press

Flu season worsens as 44 states report high activity

NEW YORK (AP) — The U.S. flu season keeps getting worse. Health officials said Friday that 7.5% of outpatient medical visits last week were due to flu-like illnesses. That’s as high as the peak of the 2017-18 flu season and higher than any season since. The annual winter flu season usually doesn’t get going until […]
22 hours ago
Secretary of Defense Lloyd Austin introduces the B-21 Raider stealth at Northrop Grumman Friday, De...
Associated Press

Keep COVID military vaccine mandate, defense chief says

ABOARD A U.S. MILITARY AIRCRAFT (AP) — Defense Secretary Lloyd Austin said he wants to keep the military’s COVID-19 vaccine mandate in place to protect the health of the troops, as Republican governors and lawmakers press to rescind it. This past week more than 20 Republican governors sent a letter to President Joe Biden asking […]
22 hours ago
Associated Press

Family says coyote attacked toddler outside LA home

LOS ANGELES (AP) — A coyote ambushed and injured a 2-year old girl outside her Los Angeles home in a daytime attack before her father chased the animal off, her family said. Home security video obtained by KTLA-TV shows the animal grab and drag the toddler across her lawn and sidewalk, just seconds after her […]
22 hours ago
FILE -  Rep. Jim Kolbe, R-Ariz, speaks during a press conference at the American University of Beir...
Associated Press

Longtime Arizona GOP Rep. Jim Kolbe dies at 80

PHOENIX (AP) — Jim Kolbe, a Republican congressman who represented a heavily Democratic region of Arizona for more than two decades and was a proponent of gay rights, has died. He was 80. Arizona Gov. Doug Ducey said in a statement that Kolbe died Saturday. Ducey ordered flags lowered until sunset Sunday. Kolbe served in […]
22 hours ago
Associated Press

Fan buying famed ‘Goonies’ house in Oregon, listed for $1.7M

ASTORIA, Ore. (AP) — The listing agent for the Victorian home featured in the “The Goonies” film in Astoria, Oregon, said this week the likely new owner is a fan of the classic coming-of-age movie about friendships and treasure hunting, and he promises to preserve and protect the landmark. The 1896 home with sweeping views […]
22 hours ago
New Los Angeles County Sheriff Robert Luna is sworn in by the Honorable Samantha Jersey, Presiding ...
Associated Press

New LA sheriff vows accountability, integrity for department

LOS ANGELES (AP) — The new head of the nation’s largest sheriff’s department vowed Saturday to usher in an era of integrity and collaboration after his predecessor’s tenure was marked by clashes with other public officials and allegations that ganglike groups of deputies ran amok within the agency. Robert Luna took an oath of office […]
22 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Prep the plumbing in your home just in time for the holidays

With the holidays approaching, it's important to know when your home is in need of heating and plumbing updates before more guests start to come around.
(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
Sweden’s big interest rate hike follows other central banks