Swedish Krona: Dovish Riksbank weighs on currency – MUFG
The post Swedish Krona: Dovish Riksbank weighs on currency – MUFG appeared on BitcoinEthereumNews.com. MUFG analysts argue that the Swedish Krona is underperforming as the Riksbank, central bank of Sweden, stays cautious despite the energy shock. With inflation soft and policy described as a “good initial position”, they see little chance of a near-term hike, and note that even optimism on a US/Iran deal has not yet sparked a meaningful Swedish Krona (SEK) rebound. Soft inflation keeps Riksbank patient “In contrast, the Riksbank in Sweden is not in a rush to follow the Norges Bank in raising rates. Recent weaker growth and softer inflation have given the Riksbank greater scope to look through the energy price shock. The latest CPI report showed headline inflation falling into negative territory in April, while core inflation (CPIF excluding energy) remained flat.” “These developments have provided the Riksbank with leeway to signal that the current policy rate offers a “good initial po