Kristoffer Lomholt, Analyst at Danske Bank, sees the Nordic central bank
keeping its benchmark rates unchanged at its December meeting.
Key Quotes
“Following the ECB meeting on 3 December, we have changed our call for the Riksbank and now expect it to cut by 10bp to -0.45% in April (previously we called for a cut in December)”.
“We have previously argued that the 9.30-9.60 would be a fair range for EUR/SEK in the short term”.
“In light of better data and because we are delaying our estimate of a rate cut to April 2016, we believe a reasonable range for EUR/SEK over the next few months has shifted down to 9.10-9.50, with an emphasis on the lower part”.
“Just as before, we argue that the SEK is fundamentally undervalued and we expect this to be corrected gradually by a lower EUR/SEK over the course of 2016”.
Key Quotes
“Following the ECB meeting on 3 December, we have changed our call for the Riksbank and now expect it to cut by 10bp to -0.45% in April (previously we called for a cut in December)”.
“We have previously argued that the 9.30-9.60 would be a fair range for EUR/SEK in the short term”.
“In light of better data and because we are delaying our estimate of a rate cut to April 2016, we believe a reasonable range for EUR/SEK over the next few months has shifted down to 9.10-9.50, with an emphasis on the lower part”.
“Just as before, we argue that the SEK is fundamentally undervalued and we expect this to be corrected gradually by a lower EUR/SEK over the course of 2016”.
