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SWEDEN: Small Uptick In Inflation Expectations Won't Concern Riksbank

SWEDEN

There was a minor uptick in Swedish CPIF expectations in January, but long-term expectations remain very close to the 2% target. The Riksbank will continue to focus more on actual inflation outcomes, growth data and the krona in determining its monetary policy stance. Consensus leans towards a rate cut in January, even as Governor Thedeen struck a cautious tone in a speech yesterday.

  • 1-year ahead expectations amongst money market players were 1.8% in January (vs 1.7% in Dec).
  • 2-year ahead expectations were steady ay 1.9%.
  • 5-year ahead expectations ticked up to 2.1% (vs 2.0% in Dec).
  • Note: The inflation expectations survey is now published by Origo Group (previously Kantar Prospera).
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There was a minor uptick in Swedish CPIF expectations in January, but long-term expectations remain very close to the 2% target. The Riksbank will continue to focus more on actual inflation outcomes, growth data and the krona in determining its monetary policy stance. Consensus leans towards a rate cut in January, even as Governor Thedeen struck a cautious tone in a speech yesterday.

  • 1-year ahead expectations amongst money market players were 1.8% in January (vs 1.7% in Dec).
  • 2-year ahead expectations were steady ay 1.9%.
  • 5-year ahead expectations ticked up to 2.1% (vs 2.0% in Dec).
  • Note: The inflation expectations survey is now published by Origo Group (previously Kantar Prospera).