Riksbank raises repo rate to 0.50%
2 July 2010
Sweden raised rates for the first time in two years, but said the euro zone debt crisis was likely to dampen growth and reduce the need for further hikes in the longer term. Sweden's economy has been picking up speed and the Riksbank said this merited a hike to 0.50 percent from a record low of 0.25 percent, though two of six board members wanted to hold rates this time round. The bank hiked its 2010 growth forecast, but cut its 2011 and 2012 outlooks and its 2012 interest rate forecast, saying austerity steps by Europe's indebted governments would hurt export-dependent Sweden.