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

"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.