Forex Flash: Close call for Riksbank tomorrow – Rabobank

The recent improvements in the Swedish economy would add further pressure to the Riksbank, which will decide tomorrow whether to take the lending benchmark to 0.75% from the current 1.0%. Since last meeting in mid December, the krona strengthened from around 8.8000 to 8.5000 in early January, just to pick up pace later to the actual levels around 8.5600

“We are of the view that the most likely course of events will be for the Riksbank to hold at 1% but for the accompanying rhetoric to maintain a clear dovish bias with the door left open for further easing in April should developments in the interim warrant it”, assessed Analyst Christian Lawrence at Rabobank.