Research team at TD Securities expect the Sweden’s Riksbank to hike its repo rate by 25bps on 20th December, even though the recent data surprises have generally been to the downside, and conviction of this hike remains low.
Key Quotes
“Riksbank officials continue to keep December optionality open but have yet to rule out a hike.”
“We stick to our expectations of a 25bps rate hike, conditional on our forecast of a slight pick-up in core inflation.”
“Regardless of a December or February hike, the Riksbank is likely to take a long pause after its hike.”
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