Commerzbank’s Antje Praefcke argues that despite currently low Swedish inflation readings, the Riksbank is likely to maintain its guidance that the policy rate could rise by year-end. She points to temporary tax measures and elevated energy prices as factors that could push inflation higher ahead, and expects elections to have limited near-term impact on the Swedish Krona.
Inflation risks keep hike chance alive
“Sweden’s August inflation data came as no surprise to the Riksbank at the start of the week. Following deviations from its forecasts in June and July, inflation in August was in line with its expectations (headline rate +0.3% yoy, core…
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