Sweden’s central bank raises interest rate to hit inflation

COPENHAGEN, Denmark (AP) — Sweden’s central bank has raised a key interest rate by half a percentage point to combat rapidly rising inflation and price increases that are spreading through the economy. Riksbanken said Thursday that it decided to raise the policy rate to 0.75% to try to prevent high inflation from becoming entrenched. It says Russia’s invasion of Ukraine and pandemic-related restrictions in China have helped push up prices for energy, food and other goods. Inflation in Sweden is at 7.2%. The move comes as other central banks around the world, including the U.S. Federal Reserve and Bank of England, also have raised interest rates to target inflation.