Riksbank and Norges Bank on the hawkish page now – TD

Strategists at TD Securitiers gave their views on the prospects for both Nordic central banks.

Key Quotes

“The Riksbank seems to have taken a page from the ECB in how it’s considering the impact of currency strength on inflation, and we sense a greater level of comfort than in the past. Norges Bank also turned more hawkish despite too-low inflation, which seemed to be driven by FOMO more than inflation targeting”.

“The Riksbank still resists SEK strength, but we think they are changing their tune. Robust growth and rising inflation pressures may have them look to FX gains to help with the heavy lifting. We see two-way risks in NOK until the Norges Bank becomes more confident on the inflation outlook; Norway's housing market remains a medium-term risk”.