The Riksbank decided to ease policy further intra-meeting, by cutting its repo rate to -0.25% and announcing an increase in its sovereign bond purchase programme (SEK30bn with maturities up to 25 years).
Barclays quotes in a report as follows ...
- In line with our expectations, the emphasis of the Riksbank has shifted radically towards the strength of its currency and the implied downside risks to inflation. As a result, risks of further easing in the short-term remain high, in our view.
- We recommend staying long USD/SEK targeting 9.0150, given the risks for further easing in the short term and our expectations for Fed policy normalisation.
