Riksbank to remove the rate cut probability – Danske Bank

Chief Analyst, Christin Tuxen at Danske Bank expects the Riksbank to remove the rate cut probability when the new rate path is presented today.

Key quotes

“We see no reason for a substantial shift in policy or language at the Riksbank meeting, as forecasts for growth and inflation are expected to be broadly unchanged.”

“Our call that the Riksbank will remove its easing bias at today’s meeting is likely to be already priced in, with EUR/SEK following the move towards the 9.60 level seen over the past week. Thus, if we are right, we should not expect EUR/SEK to move significantly lower from the present level. Hence, the risk for EUR/SEK today is that the Riksbank will keep easing bias, which would be likely to trigger a brutal sell-off in SEK after other major central banks have recently turned more hawkish.”