Swedish Riksbank Surprises With First Rate Hike in Seven Years
- Decision sends krona soaring as many were surprised by move
- Shift away from historic stimulus comes at uncertain time
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For the first time in seven years, the Swedish central bank raised interest rates, surprising many in the market as policy makers chose to focus on low unemployment instead of an uncertain outlook driven by global trade conflicts.
The Riksbank, which is based in Stockholm, added a quarter of a percentage point to its repo rate, bringing it to minus 0.25 percent. The decision was expected by fewer than half the 24 economists surveyed by Bloomberg.