SEK: Brief and concise statement from Riksbank - Commerzbank

As expected, on Wednesday, the Riksbank left its key interest rate unchanged at 1.75% yesterday and signaled that it does not anticipate any further changes in the foreseeable future. Its statement was correspondingly brief and concise, Commerzbank's FX analyst Antje Praefcke notes.

Riksbank's event was neutral for the SEK

"Growth was somewhat stronger than expected during the third quarter, according to preliminary statistics. At the same time, the labour market is still showing weak development, although there are now some signs that a turnaround is on its way. Overall, the outlook for inflation and economic activity remains largely unchanged. The overall risk picture is not assessed to have shifted to any significant extent since September, but the Riksbank is still vigilant regarding developments."

"Provided that everything continues to develop as expected by the Riksbank, the policy rate will remain at 1.75% for the time being. The Riksbank will publish its new forecasts in December. This meeting will again provide more scope for lengthy explanations and comments. Should any fundamental changes occur or an external shock threaten before then, the Riksbank can still take action, as it is leaving all options open in its statement. Otherwise, it will maintain its stance and wait and see."

"In line with the expected outcome of the meeting and the brevity of the statement, the event was neutral for the SEK."