The Swedish krona fell today as the nation’s central bank showed no signs of planning to raise interest rates in the near future. That is despite strong economic growth that pushed inflation close to the bank’s target of 2%.
The Riksbank left its main interest rate unchanged at -0.5% as was widely expected. Talking about its plans for the future, the central bank stated that it “is expecting, as before, not to raise it until the middle of 2018.” Furthermore the bank considers to extend its asset purchase program, which currently is set to expire by the end of this year:
As the present asset purchase programme will run for the remainder of the year, it will provide an opportunity to await further information that could affect a decision in December to possibly extend the purchases.
It is clear that the Riksbank wants to see what the European Central Bank will decide at its meeting later today.
USD/SEK advanced 0.18% to 8.2328 as of 8:26 GMT today.
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