Riksbank minutes were released today at 8:30 am GMT. Document related to November 22-23, 2023 meeting at which central bank unexpectedly kept interest rates unchanged, with the main deposit rate staying at 4.00%. Market expected a final 25 basis point rate hike of the cycle. Back then investors saw it as a strong sign that Riksbank is done hiking rates and now traders were looking for confirmation in minutes.
Minutes showed that Board noted that inflation is still high but is falling and that policy tightening in recent months has reduced demand in Swedish economy. Riksbank noted that rate hikes helped reduce inflation and that Swedish krona remains unjustifiably weak. Some members said they are hopeful rates will not needed to be increased further but Bank is ready to do so if data requires it. Leaving rates unchanged at the latest meeting seem to be a well-balanced policy decision.
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Create account Try a demo Download mobile app Download mobile appThe release has largely confirmed what markets positioned for - rate hikes in Sweden are most likely over. Of course, Bank stopped short from saying it right away. SEK was muted following the release with EURSEK trading little change 5 minutes after minutes release.
EURSEK is trading little change following Riksbank minutes release. However, taking a look at the pair on D1 interval, we can see that the pair is bouncing off the 11.28 swing area today. Source: xStation5
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