Free Trial

MNI BRIEF: Riksbank Hikes 25bps, Front- Loads Tightening

(MNI) London

The Riksbank hiked by 25 basis points to 0.25% Thursday, publishing a collective forward rate path showing a high probability of three more hikes this year and two more in 2023. The path showed the board planning to front-load tightening in response to the inflation shock.

The repo rate -- to be renamed the policy rate from June -- was shown rising swiftly to 1.18% by the second quarter of 2022, with the rate path on MNI calculations showing a June hike fully priced in and a high probability of 25 basis point hikes at each subsequent meeting this year, with the Riksbank stating that there were likely to be two or three more hikes in 2022.

The board also announced a slowing of asset purchases, Inflation is expected to fall back in 2023 and to be close to the 2.0% target from 2024.

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

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.