Little New Information Following Hearing

The Riksbank's hearing at the Riksdag has concluded, and overall struck similar tones to previous communications with not much insight into where future decisions may be headed.

• Several members stressed the importance of broad based declines in inflation, focusing on services prices (services inflation was 7.0% Y/Y in September vs. 7.0% prior) and downplaying energy price falls.
• First Dep. Governor Breman's presentation included a slide on the development in upstream prices (home market price index, import price index and domestic supply price index) and noted that the relationship between producer and consumer prices may be more reliable now as pandemic-related effects dissipate.
• There was little discussion on the pace of QT or the Riksbank "consultation response" to the National Debt Office currency exposure plans. Dep. Gov. Flodén noted a few times the importance of fiscal policy not becoming too expansionary and working against the Riksbank's policy.
• EURSEK and NOKSEK were mostly driven by global flows rather than the hearing, with the former moving away from intraday lows on the back of softening global risk appetite.