The pan-European STOXX 600 index rose 0.5% to its strongest level since August 18. Riksbank raised borrowing costs by 0.75 points to 2.5 per cent and signalled more tightening is needed to tame inflation even as it predicted a worsening slump for Sweden’s economy. The Bank of England must continue raising interest rates to bring inflation back to 2 per cent despite the economic hardship facing households, two policymakers said. Citing worries about the tight labour market and high inflation expectations, deputy governor Dave Ramsden said his bias was for further tightening. Those concerns were echoed by fellow rate setter…