TD Securities analysis team is expecting the Riksbank to remain on hold for longer, with their next hike in March 2020 (was Sep 2019) because of the last week’s ECB policy pivot.
Key Quotes
“We expect hikes every 6 months thereafter.”
“As today’s data showed, core inflation continues to significantly under-perform Riksbank expectations, and indicative projections show core inflation only marginally above 1.0% y/y later this year (see charts). Some sectors of the economy remain healthy (eg, manufacturing), but households are retrenching on stagnant house prices.”
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