Riksbank to cut rates by 10 bp today – Danske Bank

FXStreet (Edinburgh) - Senior Analyst at Danske Bank Signe Roed-Frederiksen sees the Nordic central bank cutting the repo rate further in today’s meeting.

Key Quotes

“The SEK will be in the spotlight today due to the Riksbank’s non-policy meeting“.

“The new Riksbank will likely act given the latest very disappointing inflation print: we expect a 10bp rate cut”.

“Importantly, however, we see a considerable risk of a larger cut (i.e. 25bp) and we therefore regard risks as skewed towards a weaker SEK today”.

“We still expect EUR/SEK to be locked in a range for most of the year with the upside capped by relative fundamentals, ECB QE and the downside protected by the Riksbank”.