ING anticipates Riksbank dovish tilt, SEK downside risk

Published 11/03/2025, 08:38
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The Riksbank’s Executive Board’s testimony before the Swedish parliament sparked anticipation of market-moving developments. Recent market expectations have tilted toward a hawkish stance, with a consensus that the Swedish central bank may cease easing measures.

This shift was primarily influenced by Sweden’s higher-than-expected inflation figures for February. However, ING has expressed concerns that the markets might be underestimating the unpredictability of the Consumer Price Index (CPI) data and the potential effects of US tariffs.

The financial institution warns that the risks lean toward a more dovish Riksbank, which could lead to a depreciation of the Swedish krona (SEK) following the parliamentary testimony.

The EUR/SEK currency pair is currently undervalued in the short term, according to ING. There is a possibility that the pair could climb above the 11.0 mark this week if instability in European Union sentiment arises.

Despite this, ING maintains a prediction of stabilization for the EUR/SEK within the 11.0 to 11.20 range over the next two quarters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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