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Analysts at TD Securities note that the Riksbank left its policy rate on hold at -0.25%, but appears to be determined to raise rates out of negative territory in December.

Key Quotes

“As a result, we’ve had a change in view and now look for a single rate hike in December to 0.00% before pivoting to neutral.”

“The Norges Bank left its policy rate on hold, but did note that, “the weak krone may result in higher inflation ahead.” So the currency will be something to watch heading into the next MPR in December.”

“FX: Looking forward, our focus remains on upside risks for EURSEK as bigger-picture macro risks remain to the downside. With short-SEK positioning cleaner, we expect the uptrend in both EURSEK and NOKSEK to continue. At the same time we think a more-constructive NOK tone could emerge more broadly as its recent weakness looks overdone.”