Mats Hydén, analyst at Nordea Markets, notes that the Riksbank left its repo rate unchanged at -0.25%, while making no changes to its repo rate path.
Key Quotes
“GDP growth for 2019 was revised down to 1,3% (from 1,5%). Apart from that no major downward revisions to Swedish economy.”
“The mandate to intervene in the currency was not renewed. This is slightly EURSEK bearish near-term.”
“No new comments on the asset portfolio. We expect the Riksbank to deliver new information regarding its bond buying at the April meeting.”
“All-in-all, a “wait-and-see” announcement much inline with our expectation. Market reactions should be limited in rates while a decrease in EURSEK is reasonable as the FX intervention mandate was not renewed. The effect should be temporary.”
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