Sweden's central bank has decided to keep its central interest rate steady at a record low 2 per cent, the bank announced Thursday. The board of governors approved leaving the rate unchanged at a regular policy review on Wednesday. The Riksbank board said it expected inflation to remain "moderate despite increasing resource utilization" and forecast that the Swedish currency would strengthen in comparison to the dollar over the coming years. The central bank's inflation target is 2 per cent over the coming two-year period. The bank said it predicted that Swedish economic "growth will be around 3 per cent over the coming two years." The Riksbank's most recent interest rate cut was in April when the repo rate for the money market was lowered by 0.5 percentage points to the current 2.0 per cent.
