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12 Mar 2015
Likeliness of a rate cut by Riksbank grows bigger – TDS
FXStreet (Edinburgh) - In the opinion of Rich Kelly, Strategist at TD Securities, the Swedish central bank could ease further at the meeting on March 18.
Key Quotes
“Inflation and expectations data may not have been the smoking gun, but the Riksbank has been quite vocal on being unhappy about SEK strength, and it is not fundamentally justified”.
“Next week is a non- policy meeting on March 18th which at least provides scope for a surprise, after the Riskbank not only overtly said in the MPR when they moved to NIRP that they could ease inter-meeting, but bolded it”.
“And their first round of QE just happens to wrap up this Monday, two days before the non-policy meeting. Obviously, forecasting inter-meeting surprises is ripe with risk, but it is hard to think this is all entirely coincidental”.
Key Quotes
“Inflation and expectations data may not have been the smoking gun, but the Riksbank has been quite vocal on being unhappy about SEK strength, and it is not fundamentally justified”.
“Next week is a non- policy meeting on March 18th which at least provides scope for a surprise, after the Riskbank not only overtly said in the MPR when they moved to NIRP that they could ease inter-meeting, but bolded it”.
“And their first round of QE just happens to wrap up this Monday, two days before the non-policy meeting. Obviously, forecasting inter-meeting surprises is ripe with risk, but it is hard to think this is all entirely coincidental”.