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- EUR/SEK to fall again only when ECB doves force interest rate cuts – Commerzbank
EUR/SEK to fall again only when ECB doves force interest rate cuts – Commerzbank
Economists at Commerzbank have adjusted their EUR/SEK forecasts.
The end of the interest rate cycle in Sweden is approaching
“The end of the interest rate cycle in Sweden is approaching, despite persistently high inflation rates. Moreover, the Riksbank no longer seems to be as concerned as before about the inflationary effect of a weak Krona. It is therefore difficult for the Krona to appreciate against the Euro in the short term, which benefits from a seemingly more restrictive ECB.”
“Only later should EUR/SEK fall again, more slowly and from higher levels though. We adjusted our EUR/SEK forecasts accordingly.”
Source: Commerzbank Research
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