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Holds Rates Unchanged, Against Outside Expectations of a Hike

RIKSBANK
  • Riksbank keep rates unchanged at 4.00% vs. split consensus, which erred in favour of a 25bps hike to 4.25%.
  • The Bank state that they are prepared to raise rates further if CPI prospects deteriorate, adding that they are considering increasing the pace of sales of government bonds, and a decision on this could follow at the January meeting.
New path projections:
  • Q4'23: 4.00% (Prev. 4.03%)
  • Q4'24: 4.10% (Prev. 4.10%)
  • Q4'25: 3.87% (Prev. 3.95%)
  • Q4'26: 3.51% (New projection)

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