The Swedish central bank has raised its key interest rate by a quarter of a percentage point to 2 percent to keep inflation in check as the Swedish economy grows.

The Riksbank says the Swedish economy is growing "at a good rate" despite uncertainty in the international outlook, including the unexpectedly weak U.S. economy and the debt crisis in the eurozone.

The Riksbank said Tuesday there is a need to gradually increase the repo rate "to stabilize inflation around the target of 2 percent."

Sweden's economy is currently one of the best performers in the European Union.