Riksbank remains dovish – UOB

FX Strategists at UOB Group have assessed the Riksbank minutes published yesterday.

Key Quotes

“There were plenty of headlines scrolling through from the Riksbank's minutes. The Swedish central bank is still worried about weak inflation despite better than expected recent data, according to the minutes, which provided a dovish warning even as the bank removed its easing bias”.

“The Riksbank has long been noted for its extreme dovishness, even by the recent standards of global central banks, but the Executive Board finally declared that it is unlikely to make further interest rate cuts at its meeting earlier this month”.

“However, in the minutes of the meeting, released on Tuesday, the executive board stressed that “it is important that the market does not pre-empt future rate increases”, warning that it has not completely ruled out further cuts “in the period ahead” if recent inflation rises don’t last. That said, moves in SEK were muted”.