EURSEK targeted at 8.80 by Q4 2016

The Riksbank's negative rate policy seems to succeed in balancing medium-term inflation expectation. It is difficult for the bank to justify an aggressive rate cut when growth rate remain robust. Therefore, the Riksbank is seems to end its easing cycle.

As a complement the expanded QE programme, an additional 10bp repo rate cut by the Riksbank is foreseen in December. Therefore, EURSEK is targeted at 9.30 by year end and at 8.80 by Q4 2016, says Barclays.