More from Floden (uber dovish but SEK strengthens)

Riksbank’s member on the wires:

  • Swedish real economy doing rather ok
  • ECB action has big effect  on Swedish economy
  • Krona is slightly undervalued
  • Krona not dramatically undervalued
  • Riksbank can buy more assets, cur repo rate if needed
  • Expansive monetary policy necessary to boost inflation
  • Doesn’t exclude Krona intervention if needed

SEK rises after his comments and is now the strongest currency in G10. 


Riksbank can purchase other assets than government bonds

  • Krona will eventually strengthen
  • Krona undervalued from long-term perspective
  • Riksbank can lower repo rate ’at least one more step’
  • Riskabnk still believes action taken is sufficient
  • There’s still scope to act if needed
  • Doesn’t exclude krona intervention if needed
  • Riksbank can buy more assets and cut repo rate if needed
  • Riksbank is worried that low rates boost private debt

First part of the speech: