The Swedish central bank – Riksbank Governor Stefan Ingves was out with some comments in the last hour saying that the economy is where we saw in February and we need to adjust monetary policy to the economic situation.
• Krona weakness is partly due to monetary policy.
• The central bank does not have an exchange rate specific target.
• Have to allow for the fact that the Krona will fluctuate given no specific exchange rate target.
• Our view is that Krona will strengthen slowly.
• Entering more calmer phase in the Swedish economy.
• Believe unemployment has bottomed.
• See continued elevated pressure on the labour market.
• Do not see a global downturn ahead.
• Getting harder to predict Brexit consequences.
• Feeling slightly more positive on trade talks.