Swedish Krona Stable After Drop on Riksbank Statement

The Swedish krona was stable during the early Wednesday’s session after falling during the Tuesday’s session. The drop was caused by somewhat dovish policy statement from Sweden’s central bank.

The Riksbank kept its benchmark interest rate at -0.5% at the Tuesday’s meeting. The central bank signaled that an interest rate hike is unlikely in about a year:

The first rate increase is not expected to be made until the middle of 2018, which is the same assessment as in April.

Furthermore, the bank did not rule out possibility of a rate cut.

USD/SEK was virtually unchanged at 8.5246 as of 22:00 GMT today after rising 0.5% during the previous trading session.

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