12 Feb 2015
Riksbank surprised markets with QE – TDS
FXStreet (Edinburgh) - Strategist at TD Securities Jacqui Douglas assessed today’s unexpected decision by the Riskbank.
Key Quotes
“The Riksbank delivered a –10bps rate cut today, pushing the repo rate into negative territory for the first time ever”.
“On top of negative rates, the Riksbank delivered the even bigger surprise of starting QE, with an initial purchase of SEK10bn of government bonds through February-March”.
“The Riksbank left the door wide open to further easing from here, with the potential for further rates cuts as well as further government bond purchases”.
“We now forecast another 10-15bps rate cut from the Riksbank at the April meeting at the very latest, in addition to another SEK10bn of QE announced at that point”.
Key Quotes
“The Riksbank delivered a –10bps rate cut today, pushing the repo rate into negative territory for the first time ever”.
“On top of negative rates, the Riksbank delivered the even bigger surprise of starting QE, with an initial purchase of SEK10bn of government bonds through February-March”.
“The Riksbank left the door wide open to further easing from here, with the potential for further rates cuts as well as further government bond purchases”.
“We now forecast another 10-15bps rate cut from the Riksbank at the April meeting at the very latest, in addition to another SEK10bn of QE announced at that point”.