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STOCKHOLM, April 27 Sweden's central bank held
its benchmark interest rate at -0.50 percent as expected on
Thursday but said it would extend its bond buying programme by
15 billion Swedish crowns and pushed out its forecast for when
rates may rise to the middle of 2018.
"Inflation has shown a rising trend for some years, but it
is now expected to take longer before it stabilises around 2 per
cent," the bank said in a statement.
"To support the upturn in inflation, monetary policy needs
to be somewhat more expansionary," it said.
In February, underlying inflation hit the 2 percent target
for the first time in more than six years, but fell back again,
supporting central bank fears that the recent uptick was not yet
on firm ground.
(Reporting by Stockholm Newsroom; Editing by Toby Chopra)