Sweden leaves key rate at 1.5%; krona up
FRANKFURT (MarketWatch) -- The Swedish krona gained ground versus the euro Wednesday after the nation's central bank left its repo rate unchanged at 1.5%, saying it needs to remain low "to support economic activity and ensure inflation is in line" with its 2% target. "The repo rate is expected to remain at this low level for just over a year. Later on, when inflationary pressures increase, the repo rate will need to be gradually raised," the central bank said in a statement on its website. The central bank said inflation is currently low, mainly due to subdued cost pressures and the strengthening of the krona after the financial crisis. The euro fell 0.3% to fetch 8.72 kronor . The dollar was little changed at 6.93 kronor.