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19 Mar 2015
Further easing by the Riksbank remains likely – BTMU
FXStreet (Edinburgh) - In its attempts to wake up inflation figures and prevent the krona from appreciating further, the Riksbank could implement more easing measures, suggested Lee Hardman, Currency Analyst at BTMU.
Key Quotes
“The Riksbank unexpectedly eased monetary policy by lowering its key policy rate further into negative territory to -0.25% from - 0.1%”.
“The Riksbank also announced that it will carry out further purchases of government bonds totalling SEK30 billion”.
“The fresh purchases still remain relatively small equating to only around 0.8% of GDP”.
“The unexpected timing of further monetary easing from the Riksbank highlights that it does not want the krona to strengthen which could undermine their efforts to return inflation back to target as soon as possible”.
“However given the scale of ECB which is weighing on EUR/SEK, the Riksbank is likely to remain under pressure to continue easing policy”.
Key Quotes
“The Riksbank unexpectedly eased monetary policy by lowering its key policy rate further into negative territory to -0.25% from - 0.1%”.
“The Riksbank also announced that it will carry out further purchases of government bonds totalling SEK30 billion”.
“The fresh purchases still remain relatively small equating to only around 0.8% of GDP”.
“The unexpected timing of further monetary easing from the Riksbank highlights that it does not want the krona to strengthen which could undermine their efforts to return inflation back to target as soon as possible”.
“However given the scale of ECB which is weighing on EUR/SEK, the Riksbank is likely to remain under pressure to continue easing policy”.