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Swedish c.bank holds rates, sees hike in December

Credit: REUTERS/STAFF

Sweden's central bank held its benchmark repo rate unchanged at -0.25% as expected on Thursday and said it planned to tighten policy at its December meeting, despite increased uncertainty about economic developments.

STOCKHOLM, Oct 24 (Reuters) - Sweden's central bank held its benchmark repo rate unchanged at -0.25% as expected on Thursday and said it planned to tighten policy at its December meeting, despite increased uncertainty about economic developments.

"As before, the forecast indicates that the interest rate will most probably be raised in December to zero percent," the central bank said in a statement.

It said a domestic and global slowdown meant the rate path after December had been revised downward "and indicates that the interest rate will be unchanged for a prolonged period".

In September, the central bank said it would hike late this year or early next, surprising many who expected that a slowing economy would lead to a more dovish policy outlook.

(Reporting by Stockholm newsroom; editing by Niklas Pollard)

((simon.c.johnson@thomsonreuters.com; +46 8 700 1045; Reuters Messaging: simon.c.johnson.reuters.com@reuters.net))

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