Riksbank will have to raise its rate path significantly to lift the SEK – Commerzbank
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The Riksbank is set to expected to announce a 75 basis points rate hike on Tuesday. In order to provide support for the krona, the krona will have to increase its rate path, economists at Commerbznka report.
“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 major banks, risks of a 100 bps hike are back on the table
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