Sweden’s inflation slowed more than expected in November, but the Riksbank is unlikely to shift dovish given improved growth and cautious guidance, ING's FX analyst Francesco Pesole notes.
As expected, on Wednesday, the Riksbank left its key interest rate unchanged at 1.75% yesterday and signaled that it does not anticipate any further changes in the foreseeable future. Its statement was correspondingly brief and concise, Commerzbank's FX analyst Antje Praefcke notes.
With the exception of Japan, where the BoJ is engaged on a policy tightening cycle, Sweden is the only G10 economy for which the market sees no real risk of further central bank easing on a 1-year view, Rabobank's FX analyst Jane Foley reports.