Sweden's central bank announces its July monetary policy decision
- Prior -0.50%
- Rate increases may start towards the end of the year
- Inflationary pressures are moderate
- Deputy governor Floden entered a reservation against repo rate path in the report
- Floden advocated a repo rate path that indicated an initial increase of repo rate by 0.25% in September or October
- An excessively rapid appreciation of SEK would make it difficult to stabilise inflation
- SEK expected to strengthen gradually in the coming years
Once again, the Riksbank maintained the hard line that they would only raise rates "towards the end of the year" with no firm commitment - but Floden's dissent to put a firm commitment on Q3 may be the only positive in an otherwise unchanged statement.
With that, EUR/SEK is extending its fall on the day touching below 10.37 now.
