Swedish Krona Dips After Riksbank Announcement, Bounces Later

Sweden’s central bank decided at today’s meeting to leave its interest rates unchanged but to expand the size of the asset purchase program. The Swedish krona dipped initially after the announcement but bounced as of now.
The Riksbank left its main interest rate at -0.35 percent. Yet policy makers still expanded monetary stimulus by extending the size of asset purchases, announcing:

Overall, the Executive Board’s assessment is that monetary policy needs to be more expansionary in order to underpin the positive development in the Swedish economy and safeguard the robustness of the upturn in inflation. The Executive Board has therefore decided to extend the government bond purchasing programme by an additional SEK 65 billion so that purchases will amount to SEK 200 billion in total by the end of June 2016.

USD/SEK fell from 8.5037 to 8.4231 as of 14:58 GMT today after rising to 8.5491 intraday.

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