Riksbank seen on hold in July – Danske Bank
|Senior Analyst at Danske Bank Stefan Mellin believes the Riksbank will keep its monetary status quo unchanged at next month’s meeting.
Key Quotes
“In July, we expect the Riksbank to leave its repo rate path intact which means a first hike in Q4 (10bp in October is what the rate path implies), while inflation is sufficiently close to its forecast. This should lend nearterm support to the SEK (reflected in our 1M forecast)”.
“The Riksbank is still too optimistic on medium-term inflation though as well as on GDP growth. Meanwhile, the ‘European elephant’ is in our view on hold until late next year. Therefore, we expect the Riksbank will eventually adopt a softer stance and postpone the first hike until next year. This should put upward pressure on EUR/SEK (cf. 6M forecast)”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.