STOCKHOLM, Oct 26 (Reuters) - Sweden's central bank raised its key interest rate by a quarter point to 1.0 percent as expected on Tuesday, lifting borrowing costs further from record lows reached during the financial crisis.
A Reuters survey of 20 analysts polled by Reuters showed 18 expected the Riksbank to lift rates to 1.0 percent now and once more in December to 1.25 percent. Two analysts expected a rate hike only in December.
"The Swedish economy is continuing to show strong growth. Inflationary pressures are currently low, but are expected to increase as economic activity strengthens" the Riksbank said in a statement.
"The repo rate needs to be raised gradually towards more normal levels to attain the inflation target of 2 per cent and create the right conditions for stable growth in the real economy."
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(Editing by John Stonestreet)