Nordic & Swiss Economics Update Icelandic króna to rise despite lifting of capital controls The Icelandic króna has fallen after the final step in the lifting of capital controls. But with tourism set to grow strongly, we suspect that the króna will rise and put downward pressure on import... 13th March 2017 · 1 min read
Nordic & Swiss Economics Update Euro-zone political risk to boost Nordic & Swiss currencies This month see the first of a number of key elections in the euro-zone this year. Investors are likely to become increasingly worried about the potential for anti-euro parties to enter government and... 6th March 2017 · 1 min read
Nordic & Swiss Economics Update Riksbank minutes strike dovish tone The minutes of the Riksbank’s February meeting were fairly dovish. With board members concerned about the krona’s appreciation and political risks in the euro-zone, we think that the Bank will wait... 1st March 2017 · 1 min read
Nordic & Swiss Economics Update Big movements in Icelandic markets The Icelandic króna has appreciated significantly over the past month, as the central bank reiterated its desire to reduce its foreign exchange intervention. More generally, bond yields have fallen... 28th February 2017 · 1 min read
Nordic & Swiss Economics Update Riksbank maintains dovishness for now While the Riksbank maintained a very dovish tone today, the strength of the Swedish economy and rising inflationary pressures mean that the Bank will soon have to change its stance. We expect the repo... 15th February 2017 · 1 min read
Nordic & Swiss Economics Update Icelandic rate cuts still on the cards despite hawkish statement The Central Bank of Iceland (CBI) kept monetary policy unchanged today, but struck a hawkish note in its accompanying statement. However, we believe that the downward effects of a further strong... 8th February 2017 · 1 min read
Nordic & Swiss Economics Update Is the Swiss National Bank tolerating a stronger franc? The recent appreciation of the Swiss franc suggests that the Swiss National Bank (SNB) may now be willing to tolerate a (slightly) stronger currency. But we see the franc rising even further to reach... 6th February 2017 · 1 min read
Nordic & Swiss Economics Update Currencies make a strong start to the year The Nordic and Swiss currencies have generally strengthened this month, albeit for different reasons. This is a trend that we expect to continue this year. 31st January 2017 · 1 min read
Nordic & Swiss Economics Update Formation of new Icelandic Government opens door for further rate cuts In the land of fire and ice, currency movements in 2016 resembled an erupting volcano rather than a creeping glacier. The appreciating króna put downward pressure on inflation, prompting the Central... 13th January 2017 · 1 min read
Nordic & Swiss Economics Update Next Riksbank move will be to tighten monetary policy Today’s minutes confirmed that only half of the Riksbank’s Executive Board supported the extension of its QE programme. And with inflation surpassing expectations in December, there is little cause... 12th January 2017 · 1 min read
Nordic & Swiss Economics Update Currencies depreciating against US dollar Following a host of central bank meetings last month, most of the Swiss and Nordic currencies fell against the US dollar. While there were few major changes for bond yields, equities in most countries... 4th January 2017 · 1 min read
Nordic & Swiss Economics Update Discord among Riksbank board points to end of loosening While the Riksbank extended QE today, a number of the Executive Board dissented, suggesting that today’s announcement marks the beginning of the end for policy loosening in Sweden. Indeed, despite its... 21st December 2016 · 1 min read
Nordic & Swiss Economics Update Weak inflation to prompt Norges Bank rate cut in 2017 The Norges Bank’s decision to leave interest rates unchanged came despite a deterioration in the outlook for growth and inflation. While policymakers remain concerned about the impact of loose... 15th December 2016 · 1 min read
Nordic & Swiss Economics Update SNB’s ultra-loose policy won’t stop franc rising against euro The Swiss National Bank’s decision to leave interest rates on hold and pledge continued currency intervention was as expected. The Bank may have drawn some comfort from the franc’s recent decline... 15th December 2016 · 1 min read
Nordic & Swiss Economics Update Icelandic rate cut may not be the last The Central Bank of Iceland’s (CBI’s) decision to cut interest rates before the next phase of capital account liberalisation came as a surprise. While the strong economy calls for policy tightening in... 14th December 2016 · 1 min read
Nordic & Swiss Economics Update Decent economic growth but challenges lie ahead The Nordic and Swiss economies generally recorded positive growth in Q3 and look set to do so again in Q4. But with growth in their main trading partner, the euro-zone, set to slow and a number of... 7th December 2016 · 1 min read
