Sweden Analysis

Currency Forecast - SEK: Upside Ahead Despite Negative Rates - MAR 2015

The Swedish central bank's surprising decision in February to cut its policy rate into negative territory and launch quantitative easing has led us to downgrade our forecasts for krona appreciation. Nonetheless, we still see modest krona upside versus the euro over a multi-year horizon, supported by a relatively strong growth outlook and a sizeable current account surplus.