High inflation makes Sweden hike key interest rate

COPENHAGEN, Denmark (AP) — Sweden’s central bank has raised its key interest rate by a full percentage point to 1.75%, saying inflation is “too high” and “is undermining households’ purchasing power and making it more difficult for both companies and households to plan their finances.” Riksbanken said Tuesday that the increase aims to bring down inflation, which was at 9.0% in August.  The central bank said the policy rate “will continue to be raised in the coming six months,” adding it will “adapt (its) monetary policy as necessary to ensure that inflation is brought back to the target.” Sweden is part of the European Union but does not use the euro, so it is not part of European Central Bank.