Sweden’s big interest rate hike follows other central banks

STOCKHOLM (AP) — Sweden’s central bank followed other central banks in undertaking a big increase to its key interest rate to combat inflation. Riksbanken said Thursday that high prices are undermining people’s purchasing power and making it tough for households and companies to plan their finances. It says the rate hike of three-quarters of a percentage point is meant “to bring down inflation and safeguard the inflation target.” Consumer prices rose 9.3% in October from a year earlier, lower than the 9.7% seen in September. The bank says the forecast “shows that the policy rate will probably be raised further at the beginning of next year and then be just below 3%.”