Sweden raises key rate - and more to come

Sveriges Riksbank, Sweden's central bank raised its benchmark interest rate on 20 June for the eighth time in 18 months, this time lifting the repurchase rate by a quarter point to 3.5%, the highest level for over four years.

The central bank also said that it will raise it twice more this year, to "around 4%" by the end of 2007 and to 4.4% in two years. One of the main reasons is that falling unemployment is pushing up wages, and productivity slowed at the beginning of this year.

"The Swedis