Riksbank surprises markets with rate hike
The quarter-point rise follows CPI inflation hitting 3.5% in Decmeber, its highest level since 1993. This is well above the central bank's target range of 1-2%, but, in spite of this, the vast majority of market analysts had expected the central bank to hold rates.
``We needed to do this to ensure good economic development and to reach our inflation target,'' said Stefan Ingves, the governor of the central bank.
Inflatio
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