Riksbank Rate 2.50% vs. Exp. 2.50% (Prev. 2.75%); if the outlook for inflation/activity remains unchanged, the rate could be cut again during H1-2025 (reiteration)

• Despite some signs that economic activity is on its way to recovery, it remains weak.


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  The interest rate has been reduced rapidly and monetary policy affects the economy with a lag. This argues for a more tentative approach when monetary policy is formulated going forward.
  

Reaction details (08:36)

• In the wake of the policy announcement, which saw a 25bps cut as expected, EUR/SEK fell from 11.50 to an 11.4872 session low - modest SEK appreciation which is potentially a function of outside bets for 50bps unwinding (though, recent global hawkish action had already done this), the line around a "more tentative approach" and the elevated CPIF forecast for 2025.

19 Dec 2024 - 08:30- Fixed IncomeImportant- Source: Riksbank