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15 Dec 2014
Riksbank may keep policy unchanged tomorrow – Nomura
FXStreet (Barcelona) - Research Analysts at Nomura anticipate the Riksbank to leave its policy unchanged tomorrow and downgrade its inflation forecast in lieu of declining oil.
Key Quotes
"We expect the Riksbank to leave its policy unchanged tomorrow (16 December). However, as a result of the more accommodative stances of other European central banks and the recent decline in the price of oil, the Riksbank will downgrade its inflation forecast again. The Bank has been strengthening the linkage between its repo rate path and its inflation outlook. Thus, we expect it to lower its repo rate path further, in tandem with the downgrade of its inflation forecast. The timing of lift-off will be delayed to end- 2016 from mid-2016. As the Riksbank remains dovish, we expect EUR/SEK to continue to trade relatively strongly, even though the ECB is expected to embark on the sovereign QE soon."
Key Quotes
"We expect the Riksbank to leave its policy unchanged tomorrow (16 December). However, as a result of the more accommodative stances of other European central banks and the recent decline in the price of oil, the Riksbank will downgrade its inflation forecast again. The Bank has been strengthening the linkage between its repo rate path and its inflation outlook. Thus, we expect it to lower its repo rate path further, in tandem with the downgrade of its inflation forecast. The timing of lift-off will be delayed to end- 2016 from mid-2016. As the Riksbank remains dovish, we expect EUR/SEK to continue to trade relatively strongly, even though the ECB is expected to embark on the sovereign QE soon."