Overview

Sweden's central bank ushered in what is expected to be a spate of interest-rate increases in rich countries this year, in response to signs of an economic upturn. The Riksbank raised rates from 3.75% to 4.0%. Sweden's consumer prices, which rose by 2.8% in the year to February, have been outstripping the central bank's inflation target for most of the past year. Yet the bank delayed raising rates until more optimistic news appeared. Sweden's workers received a hefty 3.2% pay rise in the year to December.