Riksbank: Surprise rate hike - TDS
Analysts at TD Securities suggest that against a very split market, the Riksbank surprised the small consensus majority with a rate hike today, despite the recent trend of disappointing macroeconomic data.
“Despite trying to put as positive a spin on the hike as possible today, the Riksbank lowered most major components of its macro projection: the repo rate path is lower, growth is lower, and inflation is lower too.”
“FX/Rates: EURSEK spiked lower in the immediate aftermath of the Riksbank decision, but selling pressure has diminished greatly since. We are keeping an eye on key support around 10.21, but we think the centre of gravity remains higher for the cross. We are looking for a move into the 10.40s in the weeks ahead.”