Investing.com - Sveriges Riksbank, Sweden's central bank, kept its benchmark interest rate unchanged on Wednesday, while expanding the size of its stimulus program, as policymakers increase efforts to ward off deflation from taking hold in the largest Nordic economy.
The Riksbank said it was holding the benchmark interest rate at -0.25%, surprising analysts who had expected a cut deeper into negative territory.
In addition, the central bank said it will purchase government bonds for a sum in the range of SEK40-50 billion, up from a previous purchases of SEK30 billion.
In a statement, the central bank said, "The expansionary monetary policy is having a positive impact on the Swedish economy and inflation has begun to rise."
Following the announcement, the Krona turned higher against the U.S. dollar, with USD/SEK shedding 0.63% to trade at 8.4622, compared to 8.5150 ahead of the decision.
The Krona was also up against the euro, with EUR/SEK falling 0.62% to hit 9.2938 from around 9.3550 earlier.