Riksbank hikes rates, policy stance to neutral

The Riksbank said that its 25 basis point hike that raised the repo rate to 4.0% Thursday was based on its new assessment that inflation would rise above the central bank's 2% limit in two year's time in the absence of tighter monetary policy.

The central bank seemed to indicate that its stance on future policy had moved closer to neutral, at least for the moment. While it did not indicate, as it had before, that it was leaning toward a further rate hike, it also did not rule one out.

"The futu