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"Riksbank's decision today to raise the base interest rate was in line with expectations. Markets had reckoned with it. The three- and six-month Stibor has risen sharply since the second half of October. The Swedish krona strengthened a bit on the decision of the central bank. According to our forecast, SEK is quietly gaining strength against euro. For the Estonian economy on the whole, strengthening of SEK has a modest impact," Mertsina told.

He said that in the export of goods from Estonia to Sweden, for instance, the share of the Swedish krona is just 7% and in imports from Sweden 8%. Sweden as such meanwhile accounts for only one-tenth of Estonia's total export and import of goods. 

According to Mertsina, the central bank of Sweden is set to remain cautious when it comes to further rate hikes, as Sweden's economic growth is about to decelerate in the coming years.

"Also, the central bank will try and avoid too rapid strengthening of SEK," the economist added.

In the first such move in seven years, the Riksbank on Thursday raised the base rate by 25 basis points to -0.25%.