Swedish Krona: Growth and future rate outlook favour SEK – Societe Generale - tmgm.com
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Swedish Krona: Growth and future rate outlook favour SEK – Societe Generale tmgm.com
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Global Rates: Scandi Rates Outlook
The desk asserts that the recent developments in the rates markets of Sweden and Norway suggest a tightening in monetary policy is imminent, potentially affecting the Swedish Krona (SEK) and Norwegian Krone (NOK) exchange dynamics. Per the full note from J.P. Morgan, Khagendra Gupta and Frida Infante highlight that inflationary pressures are influencing rate expectations, which could pivot central bank strategies. As inflation continues to persist above target levels—averaging around 3.5% in Sweden—the likelihood of rate hikes in 2026 grows stronger, reinforcing a bullish outlook for SEK against major currencies, particularly the EUR. In absence of high-impact events in the next month, market positioning will likely revolve around speculative changes based on rate expectations.