Forex Currency: Swedish Central Bank Raised Benchmark Interest Rate

[amandalanlulei]

Forex Currency---- Swedish Central Bank announced on July 1st to raise the benchmark interest rate from 0.25% to 0.5%. This is the first time Swedish Central Bank has raised its benchmark interest rate in forex market in a year.

Swedish Central Bank said in a statement that Swedish economy experienced a severe decline last year before the current strong momentum of development this year. Therefore, it needs to gradually raise its benchmark interest rates up to a normal level, in order to ensure the stable development of forex market and economy, and to control the inflation rate within the target at 2%. However, as the world economy is growing more slowly than expected, the scope of interest rate raise will be lower than earlier estimation.

Swedish Central Bank predicts to raise its benchmark interest rate to 0.9% by the fourth quarter this year, and 2.1% in the third quarter next year. By the third quarter of 2012, benchmark interest rate would climb furtherto 3.1%, 0.4% lower than expected in this April.----Forex Currency