Riksbank Remains in Wait-and-See Mode

Dow Jones08-20

0852 GMT - Riksbank kept its key rate unchanged at 1.75% as it awaits more information, Nordea chief analyst Torbjorn Isaksson writes. The central bank sees some upside risks to its inflation forecasts, but inflationary pressure is moderate, which gives it scope to wait and see, Isaksson says. The Riksbank isn't sending a strong signal that it will raise rates in September, but it is keeping the door open to take action if necessary. If the krona were to weaken, inflation risks could increase sufficiently for the Riksbank to hike rates, so Nordea is keeping a close eye on the exchange rate. "For now, we maintain our view that the Riksbank will keep the policy rate unchanged at 1.75% this year and raise it twice around mid-2027."

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