12 Jun 2015
Riksbank could now refrain from cutting rates in July – Danske Bank
FXStreet (Edinburgh) - In light of the recent inflation figures in the Swedish economy, Analyst Kristoffer Lomholt at Danske Bank sees the Riksbank on hold at its meeting next month.
Key Quotes
“In the Scandi FX space, EUR/SEK dropped sharply yesterday on the back of higher-than-expected Swedish inflation data”.
“Taking into account the tendencies in the Prospera inflation survey released earlier this week, we now expect the Riksbank to keep rates unchanged at the July meeting and expect the Riksbank to cut in December instead”.
“We expect EUR/SEK to continue to trade within a relative wide range of 9.20 to 9.40 in the coming months targeting 9.20 in the very short term”.
“As long as the cross stays within range, the Riksbank should be fine in our view”.
“However, one should not rule out the possibility of a policy response if EUR/SEK drops below 9.10 within the coming weeks”.
Key Quotes
“In the Scandi FX space, EUR/SEK dropped sharply yesterday on the back of higher-than-expected Swedish inflation data”.
“Taking into account the tendencies in the Prospera inflation survey released earlier this week, we now expect the Riksbank to keep rates unchanged at the July meeting and expect the Riksbank to cut in December instead”.
“We expect EUR/SEK to continue to trade within a relative wide range of 9.20 to 9.40 in the coming months targeting 9.20 in the very short term”.
“As long as the cross stays within range, the Riksbank should be fine in our view”.
“However, one should not rule out the possibility of a policy response if EUR/SEK drops below 9.10 within the coming weeks”.