Sweden's Riksbank clings to rate-hiking plan in bet recession will be dodged [Business News Network (BNN) Energy & Resources (Canada)]
SVENSKA HANDELSBK UNS/ADR (SVNLY)
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Source: Business News Network
Sweden's Riksbank clings to rate-hiking plan in bet recession will be dodged Swedish central bank policy makers are intent on leaving negative interest rates behind after almost half a decade. But faced with a barrage of bad economic data, Governor Stefan Ingves and his colleagues will on Thursday likely delay a plan to tighten at the turn of the year further into 2020. They’re betting the largest Nordic economy will avoid an outright recession as the Federal Reserve and the European Central Bank are once again adding stimulus. While the case for exiting negative rates this year is growing weaker, policy makers have consistently downplayed signs of a deepening slowdown amid high resource utilization. Ingves, while visiting London last week, said he didn’t see a recession “in the cards.” After being battered over the past month, Sweden’s krona has also recently surged, in part on optimism over Brexit solution, but also as traders reassessed bets on the Riksbank’s rate path after stron
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