Swedish Central Bank increases interest rates (AP)

STOCKHOLM - the Swedish Central Bank raised its interest rates by a quarter of a percentage point to 1.75% for check inflation that develops the Swedish economy.

If the Riksbank said underlying inflation is still low, it considers that it might spike higher than the labour market is improving and wages start to rise.

He said Swedish exports and domestic demand are "development strongly."

The Sweden economy has rebounded quickly from the global recession. In the fourth quarter, GDP increased by 7.2% year on year, the biggest jump in the European Union.

Increase in rates on Wednesday is the sixth since July.

The Riksbank has kept its forecasts unchanged, saying: it is expected to increase the rates of about 2.5 per cent in the first quarter of 2012 and 3.2% in 2013 at the beginning.

View the original article here