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16 Dec 2014
Riksbank not as dovish as expected – TDS
FXStreet (Barcelona) - Jacqui Douglas, Senior Global Strategist at TD Securities, notes that Riksbank kept rates on hold but was not as dovish as expected, keeping doors open for further easing in March.
Key Quotes
“The Riksbank kept rates on hold, but was not as dovish as we had expected. The floor for the repo rate profile remained at zero, avoiding moving into negative territory, although the Riksbank is preparing further measures that “could be presented with effect from the next monetary policy meeting”.”
“The CPIF forecasts were not revised down as much as we had thought they would be, leaving the Riksbank open to further downside surprises over the next several months.”
“Inflation surprises will likely be the primary policy driver going forward, as further downside surprises would likely push the Riksbank into unconventional measures like negative interest rates.”
Key Quotes
“The Riksbank kept rates on hold, but was not as dovish as we had expected. The floor for the repo rate profile remained at zero, avoiding moving into negative territory, although the Riksbank is preparing further measures that “could be presented with effect from the next monetary policy meeting”.”
“The CPIF forecasts were not revised down as much as we had thought they would be, leaving the Riksbank open to further downside surprises over the next several months.”
“Inflation surprises will likely be the primary policy driver going forward, as further downside surprises would likely push the Riksbank into unconventional measures like negative interest rates.”