The Riksbank is ready to anticipated to announce a 75 foundation factors rate hike on Tuesday. In order to present help for the krona, the krona will have to improve its rate path, economists at Commerbznka report.

A 100 bps transfer just isn’t utterly dominated out

“A rate step by 75 bps to 1.50% has been priced in, so Riksbank will have to raise its rate path significantly to sound restrictive and to provide upside potential to SEK short-term.” 

“I don’t want to completely rule out a 100 bps move, but I am skeptical. In this case, however, the krona would see a significant push to the upside.”

See – Riksbank Preview: Forecasts from six main banks, dangers of a 100 bps hike are again on the desk

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