Swedish central bank raises repo rate by 0.25 points to 2.75%

Nordic Business Report-October 26, 2006-Swedish central bank raises repo rate by 0.25 points to 2.75%
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Sweden's central bank Riksbank announced on Thursday (26 October) that it has decided to raise the repo rate by 0.25 percentage points to 2.75%.

"Continued good economic activity and rising inflation mean that the repo rate needs to be raised. Inflation is forecast at slightly below target level two years ahead, partly due to temporarily falling energy prices, but is then expected to rise," Riksbank said.

"It is reasonable to assume that the interest rate will need to be increased further, roughly in line with recent market expectations," the central bank added.

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