With the biggest interest rate hike in decades, Sweden's central bank is bracing itself against escalating inflation. At its penultimate meeting of the year, it catapulted the key interest rate to 1.75 percent on Tuesday, a full percentage point hike, to the surprise of the financial world. Economists polled by Reuters only had an increase of 0.75 percentage points on the slip. The currency watchdogs are reacting to the high inflation rate, which is currently 9.0 percent, with the largest jump in interest rates since November 1992. Many central banks around the world are currently increasing the price of money in the fight against inflation - above all the US Federal Reserve. According to experts, it is facing the third major increase in a row this Wednesday. Most experts expect a further increase of 0.75 percentage points.