Sweden's central bank hikes key interest rate, saying inflation is still too high

Sweden’s central bank has raised its key interest rate, saying the “inflationary pressures in the Swedish economy are still too high.” However, there were signs that the inflation had begun to fall. The Riksbank raised its policy rate Thursday by a quarter of a percentage point to 4% and says it could be raised further. The bank noted that Sweden’s currency is “unjustifiably weak.” The currency has plunged to its lowest level ever against the euro and the U.S. dollar. Sweden has been struggling with high inflation, hitting 7.5% in August. That's down from 9.3% in July but far from the 2% target set by Sweden’s central bank.