Sweden's central bank finally delivers a rate hike to round off the year
- Says next rate hike will probably happen in 2H 2019
- Sees about two rate hikes a year after the next increase
- Says there is still uncertainty over strength of inflationary pressures
In what is a closely debated meeting, the central bank decides to go through with a rate hike for the first time since 2011. This was one of the more uncertain decisions to call in recent times for the Riksbank in the build up and of note, deputy governor Per Jansson had reservations over the decision here. He argued that there is no need to raise the repo rate at present and considers it better to await further information.
I actually didn't think they had it in them to do it. But alas, they bit the bullet and pulled the trigger. EUR/SEK has fallen by nearly 1% on the day now following the decision:
