Nordic & Swiss Economics

Nordic & Swiss Economics

Nordic & Swiss Economics Update

17 July, 2017

How will the Riksbank react to the strengthening krona?

The krona’s recent rise means that exchange rate effects will detract from Swedish inflation in 2018. But with domestic inflation set to rise further above 2%, this should not prevent the Riksbank from tightening policy. In fact, we think that the repo rate will be raised before markets currently expect.

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