Sweden's Riksbank raises policy rate to 2.00%, effective from the 11th

Sweden’s Riksbank raised its policy rate by 25 basis points to 2.00% from 1.75%, effective November 11, citing economic recovery and supply-driven cost pressures. The November monetary policy update kept the inflation and growth outlook unchanged and omitted a new rate path, while indicating further hikes next year are likely if conditions hold, consistent with the September projected path. The move matters for Swedish rate-sensitive assets and the krona as the central bank extends tightening despite CPIF inflation at 1.5% year over year in September, up from 0.7% the prior month. Investors will watch the November 11 effective date, upcoming inflation and growth data, and any signal that the September rate path is revised.