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14 Apr 2015
Inflation in Sweden expected to tick higher – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Sverre Holbek sees consumer prices in the Nordic economy rising above the Riksbank target today.
Key Quotes
“EUR/SEK on the other hand is currently stuck between ECB QE on the one hand and the Riksbank on the other hand”.
“While ECB monetary policy weighs on the EUR, the Riksbank is worried that a sharp drop in EUR/SEK will add downward pressure to inflation and inflation expectations”.
“Consequently the Riksbank has fended off SEK appreciation in the last month via interest rate cuts to negative territory and asset purchases”.
“For today’s figures we expect an inflation print slightly above the Riksbank forecast to leave the Riksbank sidelined for now in the fight against deflation. This, however, is conditioned on the SEK not strengthening too much on the back of the release”.
Key Quotes
“EUR/SEK on the other hand is currently stuck between ECB QE on the one hand and the Riksbank on the other hand”.
“While ECB monetary policy weighs on the EUR, the Riksbank is worried that a sharp drop in EUR/SEK will add downward pressure to inflation and inflation expectations”.
“Consequently the Riksbank has fended off SEK appreciation in the last month via interest rate cuts to negative territory and asset purchases”.
“For today’s figures we expect an inflation print slightly above the Riksbank forecast to leave the Riksbank sidelined for now in the fight against deflation. This, however, is conditioned on the SEK not strengthening too much on the back of the release”.