16 Dec 2015
Riksbank could ease further in Q1 2016 – Danske Bank
FXStreet (Edinburgh) - Strategists at Danske Bank have assessed the recent steady stance from the Riksbank.
Key Quotes
“The Riksbank again defended its bullish outlook on inflation, keeping the repo rate, the repo rate forecast and QE purchases intact”.
“As there is a significant risk that inflation will again undershoot its forecast in the coming months, this represents good trading opportunities, especially as the market is pricing a steeper path than the Riksbank envisages”.
“Our call: a 10bp repo rate cut in April combined with an extended QE programme”.
Key Quotes
“The Riksbank again defended its bullish outlook on inflation, keeping the repo rate, the repo rate forecast and QE purchases intact”.
“As there is a significant risk that inflation will again undershoot its forecast in the coming months, this represents good trading opportunities, especially as the market is pricing a steeper path than the Riksbank envisages”.
“Our call: a 10bp repo rate cut in April combined with an extended QE programme”.