SEK on a high post Riksbank - BBH

Analysts at BBH notes that the Swedish krona is the strongest of the major currencies, rallying 0.7% against the dollar and reaching a two-month high against the euro following the Riksbank meeting. 

Key Quotes

“The central bank extended its bond buying program through H1 17, but at a slower pace.”

“It was a controversial decision and could be the last efforts. Two of the six member board wanted to stop the bond purchases now.  One other was interested in extending the purchases, but at half the pace that was ultimately decided.  Currently, the Riksbank is buying SEK45 bln of bonds (for H2 16).  In the first half of next year, it will buy SEK15 bln of conventional bonds and SEK15 bln of inflation linked bonds.  The Riksbank kept the deposit rate at minus 50 bp.”