OECD says Swedish c.bank should go-ahead with gradual rate hikes

STOCKHOLM: Sweden's economy is set to slow, but the central bank should proceed with its plans to tighten monetary policy gradually, the Organization for Economic Cooperation and Development said in a regular update.

"The gradual normalisation of policy rates should continue, to balance the risks of inflation undershooting against those of excess inflation and debt," the OECD said in its report.

The Riksbank raised its benchmark rate by 25 basis points to -0.25 percent in December - its first hike since 2011 - and has forecast it will further tighten policy in the second half of this year.