By Carl Delfeld of the Chartwell ETF Advisor
The Sweden exchange-traded-fund or ETF (EWD) held steady today and the Swedish Krona currency ETF (FXS) increased by nearly 2% in morning trading as the Swedish central bank or Riksbank raised the benchmark interest rate.
The Swedish central bank raised its key repo rate on Thursday by 25 basis points to 3.25 per cent, the highest level since mid-2003, and said there may be only one more tightening to come over the next six months.
The rate rise today was the seventh increase since the start of 2006 and was widely expected in financial markets. Official figures released at the same time as the Riksbank announcement showed Swedish inflation running at 1.9 per cent year-on-year in January, up from 1.6 percent in December. The Swedish crown hit a three-month low against the euro and fell versus the dollar after the rate move and CPI figures.
Carl Delfeld, President of the Chartwell Global ETF Advisor will lead a group of individual investors to Sweden during the third week of June 2007 to learn more about investment opportunities in Sweden as well as visit historical and cultural sites.