Riksbank, ECB Raise Interest Rates
However, they differed in the tone of the statements accompanying the hikes. Although the ECB's statement wasn't as dovish as many financial journalists tried to make us believe, they certainly did not commit themselves to further hikes. As this hike is really too little, too late to prevent inflation from getting worse in the near future, they might still feel compelled to do it again. However, that is far from certain as the ECB have a track record of ignoring its inflation target, always blaming this on "temporary" (normally you don't call things that happens every year "temporary") factors and falsely predicting that inflation will soon fall below the target.
By contrast, the Riksbank was quite hawkish, signaling not just one but two more hikes later this year. This is not likely to be enough either, but clearly it indicates that it takes its inflation target more seriously than the ECB. Not that this is necessarily a good thing. As I described in my recent Timbro report, the root cause of today's problems in the Swedish economy is that the Riksbank took its target far too seriously back in 2005, when it reduced interest rates to as low as 1.5%, in order to push up inflation. The problems with high debt levels and high inflation is what we are seeing now, and it seems unlikely that the Riksbank will be able to push back the inflation created by its previous policy to its target anytime soon without pushing the Swedish economy into a recession.