Central Banks
Riksbank Hits Economy With Half-Point Hike to Tame Prices
- Two officials opposed move, favoring quarter-point step
- Governor reiterates ‘believes in, desires’ stronger krona
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The Riksbank delivered another half-point hike in borrowing costs and pledged one more salvo, with the dovish outlook slamming the krona.
Two officials opposed the move by the Swedish central bank to raise the interest rate to 3.5%, favoring a smaller quarter-point step. The size of Wednesday’s hike was widely anticipated by economists after underlying price growth exceeded the Riksbank’s forecasts.