Sweden’s Central Bank Raises Interest Rate to Hit Inflation

Sweden’s Central Bank Raises Interest Rate to Hit Inflation
People visit one of Stockholm's busiest shopping streets during the ongoing COVID-19 pandemic, on Feb. 4, 2022. Jonathan Nackstrand/AFP via Getty Images
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STOCKHOLM—Sweden’s central bank on Thursday raised a key interest rate from zero to 0.25 percent, citing the highest inflation level since the 1990s.

Riksbanken said there had been “unusually large fluctuations in inflation in Sweden” and the rise last year “was largely due to rapid increases in energy prices.” The Consumer Price Index for March was at 6.1 percent.