Riksbank easing likely to be negative rates – TDS

FXStreet (Barcelona) - According to the TD Securities Team, the next form of Riksbank easing might be negative rates as the chance for other extreme measures is less likely.

Key Quotes

“With policy rates at zero, our impression is that the bar to ease further is high. If more stimulus is needed, there is some fear that pushing back rate hikes would not be enough, and we could actually see SEK higher in protest. The next forms of easing would likely be negative rates or some sort of commitment, while more extreme measures like a currency floor/peg do not appear to be on the radar at all.“