Sweden: Move back to a weaker SEK – Nordea

The Riksbank struck a hawkish, but appealing, tone when it left the repo rate, rate path and QE programme unchanged. Analysts at Nordea forecast a weaker Swedish krona. 

Key quotes

“The Riksbank had to say that the door is still open for rate cuts depending on what happens, but the message was clearly that other measures, such as liquidity provisions and QE, will be the way forward.”

“We still believe that the overall SEK trend will continue to be decided by the global risk on/risk off sentiment foremost in equities.” 

“Since we are cautious to the overall risk environment in the short term, we see a move back to a weaker SEK.”