Riksbank has been unable to create inflation - BBH

Despite one of the most aggressive monetary policies, strong growth and a large current account surplus, the Riksbank has been unable to create inflation, according to analysts at BBH.  

Key Quotes

“Today, Sweden reported a 0.8% m/m decline in January CPI, which was a bit more than expected, and pushed the y/y rate to 1.6% from 1.7%.  The market had expected a small increase.  The underlying rate, which uses fixed mortgage interest rates, fell 0.9% (median in the Bloomberg survey was for a 0.7% decline) and the y/y rate eased to 1.7% from 1.9%.  This is the slowest underlying rate since March 2017.   The krona is the weakest of the major currencies today, losing 1.1% against the dollar and 0.6% against the euro.”