SEK should appreciate over the course of the year due to restrictive monetary policy – Commerzbank

The Riksbank delivered a hawkish decision in February. The restrictive monetary policy should cause the Krona to appreciate in the course of the year, according to economists at Commerzbank.

Riksbank the hawk in the far north

“Everything all told the Riksbank has proven itself determined in its fight against inflation. The bank itself puts it very well: It is ‘important for monetary policy to act when inflation is too high’.” 

“I stick to my view that the market is trading SEK at excessively low levels and that it should appreciate over the course of the year due to the restrictive monetary policy.”

Source: Commerzbank Research