15 Dec 2015
Riksbank finally sees the glass half-full - TDS
FXStreet (Delhi) – ·Research Team at TDS, suggests that as per their expectations, the Riksbank left policy on hold and importantly, the overall tone suggests that the Riksbank is done easing.
Key Quotes
“The Riksbank introduced a subtlety into their reaction function: rates will not rise until inflation sustainably reaches 2%—expected to be in the first half of 2017.”
“The MPR significantly upgraded the GDP forecast. They now anticipate growth of 3.6% in 2016 (was 3.0%). Inflation was downgraded slightly on a weaker starting point.”
“The Riksbank reiterated they remain ready to act at any time if needed, but we see currency intervention as the more credible threat than further monetary policy easing.”
Key Quotes
“The Riksbank introduced a subtlety into their reaction function: rates will not rise until inflation sustainably reaches 2%—expected to be in the first half of 2017.”
“The MPR significantly upgraded the GDP forecast. They now anticipate growth of 3.6% in 2016 (was 3.0%). Inflation was downgraded slightly on a weaker starting point.”
“The Riksbank reiterated they remain ready to act at any time if needed, but we see currency intervention as the more credible threat than further monetary policy easing.”