After Wednesday’s rate hike, Sweden’s key interest rate is now at the highest level since October 2008.
Two members of the Riksbank’s board – Anna Breman and Martin Flodén – were against the double hike, instead lobbying for a smaller 0.25 percentage point increase.
The 0.5 percentage point increase was however in line with expectations, motivated by unusually high inflation.
Further hike in June or September
Rates could go up further at the bank’s next meeting in June.
”The prognosis shows that the key interest rate will be raised by a further 0.25 percentage points in June or September,” the bank wrote.
’Surprising’
Analysts are surprised by the bank’s prognosis, which Danske Bank economist Therese Persson described as ”very mild”.
”Our prognosis expected the Riksbank to raise rates by 50 points in June,” she told TT newswire.
Persson believed the milder prognosis could be due to salary negotiations, with Swedish unions and employers recently agreeing to a two-year deal.