FXStreet (Edinburgh) – Strategists at TD Securities expect the Nordic central bank to stay put at its meeting next week.
Key Quotes
“The Riksbank has been fixated on ensuring a gradual appreciation of SEK”.
“Economic fundamentals there are solid: economic growth is healthy and core inflation should be well-supported going forward (despite a dip down in November)”.
“The recent appreciation in KIX perhaps represents the biggest risk for policy as it touches October lows, but with the disappointing ECB now out of the way, we think the Riksbank will see less pressure on SEK going forward and thus be comfortable to stay on the side-lines”.
“That said, a cut in the policy rate can’t be completely ruled out, but we don’t think it would be warranted”.
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