25 Feb 2015
Riksbank might cut rates in March rather than April – TDS
FXStreet (Barcelona) - The TD Securities Team views that there is a high probability of a rate cut by the Riksbank in March rather than in its April meeting.
Key Quotes
“The Riksbank Minutes for the meeting in which they announced QE and a shift into a negative interest rate policy did not provide much in the way of new information.”
“With the lack of new dovishness, we have seen SEK strength, but would still argue that the conviction for easing was fairly broad at the last meeting, it was simply a debate of which tools.”
“As we suspected, it was a desire to anchor inflation expectations in the midst of larger than usual risks around the forecasts which drove the decision, and it was felt that the token moves in various areas would show the intent of the Riksbank to aggressively defend the inflation target.”
“We still see think that there is a high risk of an intermeeting cut in March rather than waiting until the next official meeting in April, though the Minutes here did not provide an immediate sense of urgency.”
Key Quotes
“The Riksbank Minutes for the meeting in which they announced QE and a shift into a negative interest rate policy did not provide much in the way of new information.”
“With the lack of new dovishness, we have seen SEK strength, but would still argue that the conviction for easing was fairly broad at the last meeting, it was simply a debate of which tools.”
“As we suspected, it was a desire to anchor inflation expectations in the midst of larger than usual risks around the forecasts which drove the decision, and it was felt that the token moves in various areas would show the intent of the Riksbank to aggressively defend the inflation target.”
“We still see think that there is a high risk of an intermeeting cut in March rather than waiting until the next official meeting in April, though the Minutes here did not provide an immediate sense of urgency.”