Riksbank: Riksbank will raise interest rates by 25 basis points

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The Riksbank will announce its monetary policy decision on Thursday, with Riksbank analysts expecting the bank to raise its policy rate by 25 basis points to 3.75 percent and signaling another hike this fall. Swedbank also expects the Riksbank to increase the pace of bond sales by 50%, from SEK 3.5 billion to SEK 5.25 billion a month. “However, high inflation, a resilient economy and a weak krona imply that risks are tilted toward greater austerity.” Swedbank said underlying inflation remained high and a weak krona could increase in the short term (tightening) burden, while the Riksbank may fall behind other central banks that continue to raise rates ahead of its next policy meeting in September.