Sweden's central bank expands bond-buying program

Markets Associated Press

Sweden's central bank has left its key interest rate unchanged at a record minus 0.50 percent but says it will expand its bond-purchase program by 30 billion kroner ($3.2 billion) during the first half of 2017.

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The Riksbank says "increasingly strong economic activity creates the conditions for inflation to continue rising."

The Stockholm-based bank added Wednesday there were "risks that can jeopardize the upturn in inflation," adding monetary policy must remain "very expansionary."

The Riksbank said "there is still a greater probability that the (repo) rate will be cut than that it will be raised in the near term." The rate decision will apply from Dec. 28.

European Union member Sweden is not part of European Central Bank.