Sweden Central Bank Retains Key Rate

(RTTNews) - Sweden's central bank retained its key interest rate on Thursday but suggested that policy tightening will begin this year if the outlook for inflation and economic activity remains unchanged.

The Executive Board of Riksbank decided to leave the policy rate unchanged at 1.75 percent.

The board assessed that the rate should be raised more going forward than projected in the June forecast, for inflation to stabilize around 2 percent.

The board cautioned that there are risks other than the war in the Middle East, that could individually or jointly, affect the outlook for inflation and economic activity.

"If there were to be signs of a larger and more persistent upturn in inflation, the Riksbank would raise the policy rate at a faster pace than in the current forecast," the bank said.