Swedish Riksbank
Central Bank Roll Call
March 20, 2025
The immediate sigh of relief by market participants — expressed in higher share prices and a retreat of the 10-year Treasury yield — to yesterday’s Federal Reserve show quickly wore off during overnight hours. Less emphasis has been attached to the unchanged Fed signal of likely two interest rate cuts later this year and to […] More
Swedish Interest Rate Cut
January 29, 2025
The Swedish Riksbank policy rate has been reduced by 25 basis points to 2.25%. The new level is its lowest since November 2022 follows five rates since last May. The rate had peaked at 4.0% from September 2023 until May 2024. A statement explaining today’s action defends the need for caution in extending rate reductions […] More
Dollar Up Further Ahead of FOMC Decision
January 29, 2025
The Federal Reserve is widely expected to initiate a pause in rate cutting. This review is not one that comes with new growth and inflation forecasts, but investors keenly await Chairman Powell’s press conference for possible clarification of future policy moves. The dollar climbed 0.4% overnight against the euro, Swissy and Canadian dollar, 0.6% against […] More
Swedish Riksbank Interest Rate Cut Gets Closer to Cycle’s End
December 19, 2024
The Swedish Riksbank has been administering a cycle of interest rate reduction since May 2024, which including today’s 25-basis point cut to 2.50% brings the cumulative relief to 150 basis points. Swedish CPI inflation has been under the 2.0% target for four straight months including 1.6% in November, which represents a 40-month low and drop […] More
Many More Central Banks Announce Interest Rate Decisions, Third-Quarter U.S. GDP Gets Revised Higher, And A Possible U.S. Government Shutdown Looms
December 19, 2024
World financial markets reacted sharply and immediately to yesterday’s shift in Fed forward rate guidance that now suggests only two rate cuts, not four, during 2025. Then in overnight market action, U.S. stock futures recovered about 0.7%. Share prices in the Pacific Rim 1.0% or more in South Korea, Indonesia, Taiwan, New Zealand, and India […] More
Central Bank Interest Rate Changes in Czech Republic, Sweden and Brazil
November 7, 2024
There’s been a 25-basis point cut of the Czech National Bank’s two-week repo rate to 4.0%. It’s the eighth reduction since last December (four times by 50 bps and four times by 25 bps including the most recent three occasions). Consumer price inflation of 2.6% in September is still above the target of 2.0%, and […] More
U.S. Election Reaction Sharing Spotlight with Central Banks
November 7, 2024
The Federal Reserve, which is expected to cut its interest rate target today by 25 basis points, is but one of several central banks in today’s news. Meanwhile, the Central Bank of Brazil’s Selic rate was lifted late yesterday by 50 basis points. The Bank of England’s base rate has been cut today by an […] More
Central Bank Rate Cuts in Sweden and the Czech Republic
September 25, 2024
The Swedish Riksbank’s cut to 3.25% followed similar moves done in May and August and was accompanied by a notably dovish statement of explanation. If the outlook for inflation and economic activity remains unchanged, the policy rate may also be cut at the two remaining monetary policy meetings this year. A cut of 0.5 percentage […] More
Rate Cut Fever
September 25, 2024
In the wake of a disappointing and unexpected relapse in U.S. consumer confidence in the Conference Board’s monthly measure this month, financial markets are attaching greater odds to another interest rate cut by the FOMC at its early November meeting following the sizable 50-bp initial reduction made earlier this month. The consumer sentiment index printed […] More
Mixed Central Banking Signals
August 20, 2024
The Executive Board of the Swedish Riksbank cut their policy interest rate by 25 basis points for the second time since March and released a statement that points to somewhat greater easing over the rest of 2024. Officials proclaim in it that “the policy rate can be cut somewhat faster than was assessed in June. […] More
