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MNI BRIEF: Riksbank Signals First Hike In H2 2024

(MNI) London
(MNI) London

The Riksbank left its policy rate on hold at zero but ditched its flat rate projection, instead stating that the first hike will come in the latter part of 2024 in its policy statement. The Riksbank, joining other central bank's on the tightening path, also signalled upcomig balance sheet shrinkage.

It said that while it would continue with bonds purchases in the first quarter of next year it expected its asset holdings to stay broadly unchanged in 2022 and to then gradually diminish. This suggests shrinkage before the first rate hike. The board's detailed collective rate path showed the repo rate rising to 0.12% by July 2024 and 0.19% by the fourth quarter of 2024, with the door wide open to a hike in H2 2024.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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