CPIF

Riksbank Likely on Hold as Inflation Surprises, SEK Outlook Stays Firm

We expect the Riksbank to keep rates on hold at 2.0% on 23 September, in line with expectations. Markets are pricing in a less than one-in-three chance of a cut. Rate projections may well be kept unchanged but could still suggest some possibility of another cut. Our call for now is for no more easing. Sweden's krona has room to appreciate into year-end