Nordic & Swiss Economics Update Nordic & Swiss currencies to rebound from April’s falls After depreciating against the euro in April, we think that the Swiss franc, Swedish krona and Norwegian krone will rebound, but for different reasons. Political risk could yet re-escalate in Europe... 3rd May 2017 · 1 min read
Nordic & Swiss Economics Update French election pushed currencies down and yields up Following Mr Macron’s victory in the first round of the French presidential election, Nordic and Swiss currencies depreciated and government bond yields rose. And dovish comments from policymakers at... 28th April 2017 · 1 min read
Nordic & Swiss Economics Update Riksbank dissenters fail to prevent QE extension Only the Riksbank Governor’s casting vote secured today’s unexpected QE extension. While we have pushed back our expectation for the first repo rate rise in Sweden, we still think that the Riksbank... 27th April 2017 · 1 min read
Nordic & Swiss Economics Update How will macro-prudential tools influence monetary policy? Central banks in Switzerland, Sweden and Norway have all voiced concerns about overheating in their housing markets. In Switzerland, macro-prudential policies have already served to cool house price... 5th April 2017 · 1 min read
Nordic & Swiss Economics Update Sharp currency depreciations in Norway and Iceland Market movements across the Nordic and Swiss economies were fairly limited in March. The main exceptions were in the currency market, with both the Norwegian krone and Icelandic króna recording sharp... 31st March 2017 · 1 min read
Nordic & Swiss Economics Update Divergent outlook for monetary policy in Sweden and Norway Underlying Swedish inflation is set to pick up further and means that the Riksbank’s ultra-loose policy is no longer justified. Conversely, the outlook for Norwegian inflation calls for an interest... 24th March 2017 · 1 min read
Nordic & Swiss Economics Update Inflation will undershoot Norges Bank target in coming years The Norges Bank’s decision to leave interest rates unchanged came despite a deterioration in the outlook for inflation. Policymakers remain concerned about the impact of loose monetary policy on the... 16th March 2017 · 1 min read
Nordic & Swiss Economics Update SNB on hold, but fight against franc will need to continue The Swiss National Bank’s decision to leave interest rates on hold was as expected given the recent rise in inflation. But with euro-zone political developments likely to put upward pressure on the... 16th March 2017 · 1 min read
Nordic & Swiss Economics Update Icelandic interest rates still set to be cut later this year The Central Bank of Iceland’s decision to keep policy unchanged after the lifting of capital controls was unsurprising. The recent drop in the króna reduces the need for the CBI to cut interest rates... 15th March 2017 · 1 min read
Nordic & Swiss Economics Update Swedish Consumer Prices (Feb.) After rising to a five-year high in February, Swedish headline inflation is set to ease back in the coming months as energy inflation cools. But with signs that underlying price pressures are rising... 14th March 2017 · 1 min read
Nordic & Swiss Economics Update Icelandic króna to rise despite lifting of capital controls The Icelandic króna has fallen after the final step in the lifting of capital controls. But with tourism set to grow strongly, we suspect that the króna will rise and put downward pressure on import... 13th March 2017 · 1 min read
Nordic & Swiss Economics Update Euro-zone political risk to boost Nordic & Swiss currencies This month see the first of a number of key elections in the euro-zone this year. Investors are likely to become increasingly worried about the potential for anti-euro parties to enter government and... 6th March 2017 · 1 min read
Nordic & Swiss Economics Update Riksbank minutes strike dovish tone The minutes of the Riksbank’s February meeting were fairly dovish. With board members concerned about the krona’s appreciation and political risks in the euro-zone, we think that the Bank will wait... 1st March 2017 · 1 min read
Nordic & Swiss Economics Update Big movements in Icelandic markets The Icelandic króna has appreciated significantly over the past month, as the central bank reiterated its desire to reduce its foreign exchange intervention. More generally, bond yields have fallen... 28th February 2017 · 1 min read
Nordic & Swiss Economics Update Riksbank maintains dovishness for now While the Riksbank maintained a very dovish tone today, the strength of the Swedish economy and rising inflationary pressures mean that the Bank will soon have to change its stance. We expect the repo... 15th February 2017 · 1 min read
Nordic & Swiss Economics Update Icelandic rate cuts still on the cards despite hawkish statement The Central Bank of Iceland (CBI) kept monetary policy unchanged today, but struck a hawkish note in its accompanying statement. However, we believe that the downward effects of a further strong... 8th February 2017 · 1 min read
