Jonas Goltermann, developed market economist at ING, notes that the Riksbank left the policy rate unchanged at -0.25% and also maintained the same interest rate forecast as in December.

Key Quotes

“Today’s statement is probably a little more on the hawkish side than expected. While the Riksbank acknowledged greater uncertainty around global growth and domestic conditions, policymakers still believe 'the picture of strong economic activity remains'. And if anything, the language on the inflation outlook has grown more confident, with the Riksbank increasingly certain that inflation will stabilise around the 2% target.”

“The most notable aspect of the statement is the absence of the usual reference to avoiding excessive SEK appreciation (which has been in the statement in one form or another for years), and the decision not to renew the mandate for FX intervention (never used, but intended as a signal to limit krona appreciation).”

“Today’s shift is perhaps no more than an acknowledgment that the environment has changed.”

“We still see the Riksbank hiking again towards the end of the year, though risks are skewed towards a delay as our forecast for both growth and inflation is less optimistic than the Riksbank.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Teasing range breakdown ahead of Powell speech

EUR/USD has been restricted to a narrow range of 1.1115-1.1063 since last Friday. The pair is currently probing the lower edge of the trading range. A range breakdown, if any, could trap sellers on the wrong side of the market if Fed's Powell sounds dovish.


GBP/USD retraces from 3-week high while heading into G7, Jackson Hole

GBP/USD trims latest gains as Tories warn PM Johnson. The increasing scope of soft Brexit triggered the pair’s earlier surge. G7, global central bankers’ appearance at Jackson Hole will be followed for fresh impulse.


USD/JPY: Yen dips as Japan's inflation hovers at 2-year lows

The Japanese Yen is losing altitude in Asia, possibly due to dismal Japanese inflation data and the resulting rise in the dovish Bank of Japan (BOJ) expectations. Japan's core inflation remained at two-year lows in July.


Gold: Looks south with symmetrical triangle breakdown on 4H

Gold has dived out a symmetrical triangle pattern on the 4-hour chart. The daily chart indicators also favor a drop to $1,480. Essentially, sellers have come out victorious in a tug of war with the bulls.

Gold News

The audiences of Chairman Powell

The FOMC vote in July to drop the fed funds rate 0.25% for the first time since December 2008 was 8-2 with some members who approved the reduction doubting its logic or necessity. 

Read more