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14 May 2015
Riksbank may trim interest rates by 10-15bps – TDS
FXStreet (Mumbai) - TD Securities expects the Swedish central bank to slash interest rates during Monday's non-monetary policy meeting, predicting a 10-15 basis point cut.
Jacqui Douglas, strategist at TD Securities, noted, "After yesterday’s downside surprise to Swedish inflation, the risks of another inter-meeting rate cut are once again high,"
"And with the next non-monetary policy Executive Board meeting coming up on Monday on 18th, that will provide a timely opportunity for the Riksbank to address this downside surprise,"
"While there are good arguments both for and against another rate cut right now, we think that the odds lie toward further easing and now look for another 10-15 bps inter-meeting rate cut on Monday."
Tuesday's inflation figures from the Nordic economy came in flat m/m and contracted 0.2% y/y, both prints markedly missing expectations.
Jacqui Douglas, strategist at TD Securities, noted, "After yesterday’s downside surprise to Swedish inflation, the risks of another inter-meeting rate cut are once again high,"
"And with the next non-monetary policy Executive Board meeting coming up on Monday on 18th, that will provide a timely opportunity for the Riksbank to address this downside surprise,"
"While there are good arguments both for and against another rate cut right now, we think that the odds lie toward further easing and now look for another 10-15 bps inter-meeting rate cut on Monday."
Tuesday's inflation figures from the Nordic economy came in flat m/m and contracted 0.2% y/y, both prints markedly missing expectations.