Sweden's Krona Slides After Riksbank Pushes Back First Rate Hike

Sweden’s krona headed for the biggest decline in more than a week after the Riksbank pushed back the estimated timing of its first interest-rate increase since 2011.

The central bank held its benchmark rate at minus 0.5 percent, as predicted by analysts, and said borrowing costs may be raised by 25 basis points in December or February. While the central bank’s guidance indicates a later move than some in the market expected -- ruling out an October tightening -- the size of the projected hike is larger than a 10 basis point increase that was previously considered a possibility.