Central Banks
Riksbank Steps Up Inflation Fight With Mammoth Rate Hike
- Full-point increase by Swedish central bank exceeds forecasts
- Hike marks penultimate decision under Governor Stefan Ingves
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The Riksbank raised its interest rate by a full percentage point in its most aggressive tightening in almost three decades, kicking off a global round of monetary-policy action to bring prices under control.
The Swedish central bank lifted its policy rate to 1.75%, defying the predictions of most economists for a smaller move as officials escalated their response to consumer-price increases that have exceeded their forecasts for 11 straight months. It was the biggest increase since the Stockholm-based bank set up its current policy regime, with a 2% inflation target, in the 1990s.