Sveriges Riksbank decided on Tuesday to increase the policy rate by one percentage point to 1.75%, compared to expectations of 0.75 percentage points. The Swedish central bank stated it currently intends to raise rates for the next six months, and that further decisions will be made based on the assessments of the course of inflation.
"By raising the policy rate more now, the risk of high inflation in the longer term is reduced, and thereby the need for greater monetary policy tightening further ahead," the Riksbank explained. It added that it will continue asset purchases but that they are expected to be discontinued at the end of the year.