The Swedish Central Bank (Riksbank) raised its borrowing cost by 25 basis points to 1.25%, in line with median expectations as the Swedish economy, unlike other EU members, is showing vivid signs of fast recovery.

In addition, the bank raised its growth forecasts for 2010 and 2011 to 5.5% from the prior 4.8% and to 4.4% instead of 3.8% respectively.