Back
9 Feb 2015
Riksbank could join the ‘currency wars’ – BTMU
FXStreet (Edinburgh) - In light of the Riksbank meeting on Thursday, analysts at BTMU have suggested the possibility that the Nordic central bank could adopt some form of easing measures.
Key Quotes
“Investor expectations are also already high that the Riksbank will soon adopt more aggressive monetary easing which has resulted in the krona weakening alongside the euro”.
“The Riksbank has signaled that it is preparing unconventional easing measures which could be presented at their next policy meeting on the 12th February including negative interest rates, asset purchases and lending to banks”.
“Inflation has been persistently weak in Sweden over the last couple of years with the annual rate having averaged -0.1% which is well below the Riksbank’s target”.
“However, they have signaled that currency interventions would only be used as a last resort. The krona is already significantly undervalued even without intervention”.
Key Quotes
“Investor expectations are also already high that the Riksbank will soon adopt more aggressive monetary easing which has resulted in the krona weakening alongside the euro”.
“The Riksbank has signaled that it is preparing unconventional easing measures which could be presented at their next policy meeting on the 12th February including negative interest rates, asset purchases and lending to banks”.
“Inflation has been persistently weak in Sweden over the last couple of years with the annual rate having averaged -0.1% which is well below the Riksbank’s target”.
“However, they have signaled that currency interventions would only be used as a last resort. The krona is already significantly undervalued even without intervention”.