News Headline Summary

Swedish Riksbank Interest Rate (Dec) M/M 1.00% vs. Exp. 1.00% (Prev. 1.25%)

Says:
- Sees repo rate average 1.1% in Q4 2013 vs. 1.3% in October.
- Sees repo rate average 1% in 2013 vs. 1.2% in October.
- See repo rate average 1.5% in 2014 vs. 1.7% in October
- Sees 2013 unemployment of 8.1% vs. 7.9% before.
- Sees average CPI at 0.3% in 2013 and 2.3% in 2014.

Update details:

- The Riksbank's comment that they see the average repo rate at 1.1% in Q4 hints that the central bank do not foresee further moves lower in their benchmark interest rate - hence the strengthening in the SEK currency despite the monetary easing.

Reaction details:

- EUR/SEK moved lower 388 pips in immediate reaction, last EUR/SEK 8.7310. A number of desks noting light volumes in the currency cross as well as profit taking on EUR/SEK long positions.

Print 08:30, 18 Dec 2012 - Other Central Banks - Source: Newswires