The strictures of Denmark’s exchange rate peg means that the Nationalbank will follow the ECB’s lead as it hike rates further over the coming months. But with the krone remaining towards the “strong” side of its narrow de facto trading band against the euro, we think that Danish policymakers will tighten by slightly less than the ECB and allow the negative rate differential to widen from 10bps at present to 25bps by early 2023. Next week, we have pencilled in zero m/m growth in Sweden’s GDP Indicator in June, although this would still be consistent with a chunky 1.1% q/q increase in Q2 overall.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services