Riksbank: Change in outlook? - Rabobank

According to Jane Foley, Senior FX Strategist at Rabobank, the last few months have brought a mood swing in the market regarding the outlook for Riksbank policy. 

Key Quotes 

“Previously, there had been a strong anticipation that it could only be a matter of time before the Riksbank responded to strong regional growth and backed away from its ultraaccommodative monetary policy.  Currently, however, there is a fear that the Riksbank will need to adopt a softly, softly approach to any monetary tightening due to precariously high levels of consumer debt.  This issue can be linked with the housing market, which after several years of buoyant growth has finally started to cool. That said, Sweden’s November CPI inflation registered a stronger than expected 1.9% y/y, with the underlying rate rising to 2.0% y/y.”