The finer points of Anna Breman’s views on the outlook for Riksbank policy were probably lost on her audience of a group of secondary students in a speech this week, but the message for avid Riksbank watchers was clear: rate hikes are needed and the Bank shouldn’t hang about. We are even more confident in our call that the Riksbank will start to raise the repo rate next month, which is six months sooner than currently priced in by investors.
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