Riksbank: Interest rate hike to provide additional support for the Krona – Commerzbank
Will the Riksbank dare to hike interest rates on Thursday? Economists at Commerzbank analyze SEK’s outlook ahead of the central bank meeting.
No signals of a further rate hike would have little effect on the Krona
The Riksbank should hike interest rates one more time. That would constitute a surprise for the market and would provide additional support for the Krona. However, I can also imagine that it leaves everything unchanged and maintains a small likelihood of a rate step early next year in its rate path. That would mean simply delaying the rate peak a little in case inflation eases more slowly than expected.
If, however, it leaves rates unchanged without signalling the chance of a further rate hike, that would not constitute a major surprise for the market and would therefore have little effect on the Krona.
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