Sweden Raises Rate to 1.25%, Repeats Tightening Plans

Sweden’s central bank raised its benchmark repo rate for a fourth time since July and repeated a forecast for more increases as policy makers try to steer the European Union’s fastest recovery and curb household borrowing.

The Stockholm-based Riksbank raised the seven-day repo rate a quarter of a percentage point to 1.25 percent, it said today on its website. The decision was expected by 17 of 22 economists surveyed by Bloomberg. Five predicted no change.