The Swedish krona rallied today after Sweden’s central bank left its benchmark repo rate unchanged but continued to anticipate a rate hike in the future.
The Riksbank left its main interest rate at -0.25% today. The central bank said in the accompanying statement:
After several years of high growth, the Swedish economy, similar to economies abroad, has entered a calmer phase.
The bank continued to anticipate an interest rate lift-off either at the end of this year or at the start of the next, but suggested that borrowing costs may increase slower than was previously anticipated:
As before, the interest rate is expected to be raised towards the end of the year or at the beginning of next year. However, low interest rates abroad and worsened sentiment mean that the interest rate is expected to be increased at a slower pace thereafter than in the previous forecast.
USD/SEK dropped from 9.7334 to 9.6779 as of 8:35 GMT today. EUR/SEK declined from 10.7359 to 10.6767, and its daily low was at 10.6533.
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