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Swedish interest rate raised

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Swedish interest rate raised

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Sweden’s central bank raised the cost of borrowing there on Thursday, for the first time since the financial crisis started two years ago.

Saying there is a robust recovery in the Swedish economy it put up the key interest rate by a quarter of a point to 0.5 percent.

But the bank cut its growth forecast for Sweden for 2011 and 2012 because austerity measures by Europe’s indebted governments will hurt the country’s export-dependent economy.