The Riksbank on Tuesday raised its benchmark repo rate by 25 basis points to 2%, as inflation concerns trumped the increased uncertainty over the global recovery.
The krona gained 0.2% against the euro on Tuesday and traded at Skr9.0599 ($1.45) to the single currency at 17:12pm UK time.
Data from Statistics Sweden shows annual CPI inflation in Sweden is forecast to rise to 3.2% in 2011 from 1.2% in 2010, well above the central bank's 2% target for inflation.
The central bank said the lower under
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