The Swedish central bank has raised its key interest rate by a quarter of a percentage point to 2 percent to keep inflation in check as the Swedish economy grows.
The Riksbank says the Swedish economy is growing "at a good rate" despite uncertainty in the international outlook, including the unexpectedly weak U.S. economy and the debt crisis in the eurozone.
The Riksbank said Tuesday there is a need to gradually increase the repo rate "to stabilize inflation around the target of 2 percent."
Sweden's economy is currently one of the best performers in the European Union.
© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.