In response to growing inflation, Sweden’s central bank (Riksbank) increased its discount rate by one point to 1.75 percent on Tuesday.

« Further tightening of the monetary policy is required to return inflation to the target level. So, the executive board of the bank agreed to increase the discount rate by one percentage point, to 1.75 percent, » the bank said in a statement.

The rate is expected to increase further over the following six months. Riksbank will adjust monetary policy as necessary to ensure inflation reaches its target level, according to the statement. The institution also warned that future inflation movements are still difficult to predict.

As previously reported by Statistics Sweden, the kingdom’s inflation rate in terms of annual growth of energy prices was 9% in August.

source: ft.com