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9 Feb 2015
Riksbank poised for further easing? – Danske Bank
FXStreet (Edinburgh) - In light of the next Riksbank meeting due on Thursday, analysts at Danske Bank see the likeliness of the Nordic central bank to stay put and announce further easing measures in the April’s meeting.
Key Quotes
“Our main scenario implies that the Riksbank holds still and outlines their unconventional monetary policy options (since they are at the zero lower bound) in the accompanying monetary policy report”.
“We too believe that the Riksbank will be forced to act going forward (come April), but given the wide array of possible policy measures, we refrain from making a call before the Riksbank has communicated its stance”.
“What we can say is that we do not expect the Riksbank to use the sledgehammers (QE, FX-interventions) just yet (even though we feel it is economically warranted to do so)”.
“Instead, we expect them to tread slowly and cautiously, postponing the first hike in their path and cutting the rate by some small amount (we suspect they wish to avoid pushing interbank fixings into negative territory)”.
Key Quotes
“Our main scenario implies that the Riksbank holds still and outlines their unconventional monetary policy options (since they are at the zero lower bound) in the accompanying monetary policy report”.
“We too believe that the Riksbank will be forced to act going forward (come April), but given the wide array of possible policy measures, we refrain from making a call before the Riksbank has communicated its stance”.
“What we can say is that we do not expect the Riksbank to use the sledgehammers (QE, FX-interventions) just yet (even though we feel it is economically warranted to do so)”.
“Instead, we expect them to tread slowly and cautiously, postponing the first hike in their path and cutting the rate by some small amount (we suspect they wish to avoid pushing interbank fixings into negative territory)”.