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Riksbank expected to cut rates by 10 bps – Danske Bank

FXStreet (Edinburgh) - In view of Jens Pedersen, Senior Analyst at Danske Bank, the Swedish central banks is seen lowering its benchmark rate by 10 bps at its meeting on Thursday.

Key Quotes

EUR/SEK continued to edge higher on Friday as the Riksbank meeting moves closer”.

“We expect the Riksbank to cut by 10bp on Thursday (11 February) and believe that the Riksbank will signal that the first hike will not come until 2018”.

“In our view, easing is broadly priced and we see little prospect of EUR/SEK above 9.50. Hence, we expect any rally in EUR/SEK after a rate cut to be fairly short lived”.

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