Riksbank Cautiously Takes their Foot Off the Accelerator - TDS
Research Team at TDS, notes that the Riksbank left rates unchanged at
–0.50% and extended QE by a further SEK45bn over H2 as we expected.
“They left their repo rate profile completely unchanged through end 2018, leaving a small risk of further easing this year and assumption of tightening starting in 17H2.
Their discussion sounds like a central bank that is incrementally more dovish, but is still wary of sounding too optimistic too soon for fear of putting too much pressure on the currency and inflation expectations.
Overall, we think today’s decision should increase convictions for further upside to SEK appreciation.”