简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Swedens central bank hiked its key interest rate by 25 basis points to 0.25% on Thursday and flagged further tightening ahead in a radical shift of policy plans sparked by surging inflation.
The Riksbank has been caught by surprise by price rises, which have climbed higher and proved more persistent than it and many other central banks forecast.
As recently as February, the Riksbank had expected price pressures to be short-lived, saying it would not need to hike rates until 2024.
Now the Riksbank sees two or three more rate hikes this year and said it would also allow its balance sheet to shrink this year, another policy shift.
“The Board‘s forecast is that the repo rate will be raised gradually going forward and that it will be somewhat below 2 per cent in three years’ time,” the central bank said in a statement.
Analysts at banking group Nordea said their first impression was that the Riksbank had become “hawkish”.
Russias invasion of Ukraine, which Moscow calls a “special military operation”, has added upward pressure to prices, already on the rise due to the lingering effects of the pandemic, with inflation hitting its highest level in decades.
Inflation ran at 6.1% in March, far above the Riksbanks 2% target.
Some central banks, like the U.S. Federal Reserve and the Bank of England, have started hiking rates. Others, like the European Central Bank, are expected to follow suit.
But there are reasons to be cautious.
The war in Ukraine is clouding growth prospects, inflation is eating away at household purchasing power and higher mortgage costs are likely to hit consumption. Meanwhile, there is little central banks can do about higher energy prices.
It is also far from clear whether there has been a permanent shift in inflation to higher levels. Some analysts believe central banks may relatively soon face problems getting inflation up to target again rather than bringing it down.
The Swedish crown strengthened sharply after the Riksbanks announcement.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Saxo Bank launched an attractive promotion for new clients that offers zero commission trading on transactions for the 100 most popular US stocks. This campaign began on September 17, 2024, and runs until December 31, 2024. It aims to attract clients who want to invest without paying trading costs.
MetaQuotes now offers Nasdaq real-time tick data in MetaTrader 5. Subscribe for accurate market analysis, improved trading strategies, and flexible subscription plans.
Federal Reserve Cuts Rates for the First Time in Four Years. On September 18, Bank of America Global Research revealed an upward adjustment in its forecast, expecting the Federal Reserve to implement a total of 75 basis points in rate cuts by year-end.
The Federal Reserve’s decisions to raise or cut interest rates are among the most influential drivers of market activity, particularly in the forex and cryptocurrency markets. Understanding the impact of rate changes is crucial for market participants, as it helps them anticipate potential movements and adjust their strategies accordingly.