Economists at ING analyze SEK’s outlook ahead of today’s monetary policy decision from the Riksbank.
A very close call
We are slightly leaning in favour of a rate hike today, even though we admit it is a very close call.
A hold may be accompanied by an acceleration in quantitative tightening.
The FX impact won’t just depend on the outcome, since there is a tangible risk of a split board, which could limit the upside potential for SEK in the event of a hike.
Source: https://www.fxstreet.com/news/riksbank-split-board-could-limit-the-upside-potential-for-sek-in-the-event-of-a-hike-ing-202311230809