FT: Riksbank to keep negative rates until 2019 – Nordea

In its quarterly macroeconomic update released today, Nordea (Sweden’s local bank) cut its forecasts for the Riksbank’s rate path, while upgrading its forecasts for global economic growth from 3.3% to 3.5%, the FT reports.

Jan von Gerich, Nordea chief analyst, said: “The upturn in inflation is fragile and the krona’s performance is a source of concern as a surprisingly sharp appreciation of the krona may dampen inflation. Therefore, the Riksbank will probably stay on hold as there is little need to stimulate the economy further. Signals of a tighter monetary policy stance are still a long way off.”