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MNI Riksbank Review - September 2022: 100bp hike but front-loaded

  • The first four words of the Riksbank press release say it all: "Inflation is too high."
  • The Riksbank announced a 100bp hike yesterday with their policy rate forecast looking for a further 50bp hike in November and a final 25bp hike in February to 2.50% (with a 10% hike of a further 25bp hike after that).
  • Asset purchases will continue in Q4 as previously announced (most had expected a reduction in Q4) but will likely cease from Q1.
  • This wass a dovish 100bp hike - and EURSEK has been weakening since the decision was announced yesterday.

MNI Riksbank Review - 2022-09.pdf

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