Swedish c.bank's Floden says this week's rate hike will have strong effect

The full percentage point rate hike by Sweden's central bank will have a significant impact on the Swedish economy, Deputy Governor Martin Floden said on Thursday.

"We think that this change in itself will have quite a big effect on the Swedish economy and it will dampen demand ahead," Floden said during a speech.

Floden said the central bank would probably raise the policy rate again in November and at the start of next year, but that the Riksbank does not see "a situation where we will continue to raise that much... the view is that this could be enough."