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MNI BRIEF: Riksbank Hikes 75bps; Signals Nearing Peak

(MNI) London
(MNI) London

The Riksbank Executive Board hiked 75 basis points at its November, lifting the policy rate to 2.5% with its rate projection showing a peak a little below 3%, in line with expectations (MNI RIKSBANK WATCH: A 75BP Hike Expected As Cycle Peak Nears).

The board said that the policy rate would likely be raised early next year, which points to a hike of 25 bps, or at most 50bps, at the February meeting with the rate projection showing a quarterly peak of 2.84% by the end of 2023 . The Riksbank has adopted a policy of front-loading hikes with the board stating that the 'risk that the current high inflation will become entrenched is still substantial'.

The target CPIF measure was shown falling back below the 2.0% target in 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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