Sweden's central bank will keep interest rates at a record low 1.5 per cent level, the bank said Friday. The board of governors approved to keep the key repo rate unchanged at their meeting Thursday, noting that inflation will remain in line with the Riksbank's inflation target of 2.0 per cent over the coming two-year period. "The effects of a weaker exchange rate (for the Swedish currency) and slightly higher international inflation are partly counteracted by a lower forecast for oil prices than was made in October," the Riksbanken said. The central bank said that it did not "rule out the possibility that the repo rate will need to be raised more during the winter and spring than market rates imply." In June the Riksbank lowered the repo rate by 0.5 per cent to the current 1.5 per cent. Sweden has not introduced the joint European currency, the euro. The Riksbank's decision was announced the day after the European Central Bank (ECB) and the Danish central bank announced rate hikes. --SP 2330 Local Time 2030 GMT
