The main rate in Sweden is now 3.5%. This level was expected and the previous wasot of 3.0%. 

This is important news from the ECB’s perspective, as a 25bp hike and a 50bp hike are being considered at this point, although the consensus is directed more towards a smaller hike. 

Riskbank comments:

• Rates will be raised by 25 bp in June or (and) September
• The Riksbank would now prefer a stronger SEK to combat inflation
• However, SEK level is not a determinant in decisions
• Inflation seen at 5.9% this year versus 5.5% previously
• Two members were against today’s decision (wanted 0.25 and an indication of the likelihood of another hike rather than certainty) – weak for the SEK
• Riksbank sees lots of uncertainty, sees risk of higher inflation
• SEK weakens after today’s decision

Swedish and EMU rates. Source: xStation5

A lot of weakness for the Swedish krona, which may be related to the Riksbank not presenting a very tough stance, even with higher inflation expectations this year. Source: xStation5