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According to agency’s analysis, the Riksbank’s 25 basis point rate hike may only temporarily ease the weakness of the Swedish krona. If the Swedish krona continues to weaken, the Riksbank may regret its decision to raise interest rates by only 25 basis points.
The Riksbank has said it has room for at least one rate hike this year.
Notably, Norges Bank raised interest rates by 50 basis points last week. The Swedish krona fell to a record low against the euro immediately after the Riksbank raised interest rates.
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