Riksbank: Split board could limit the upside potential for SEK in the event of a hike – ING

Economists at ING analyze SEK’s outlook ahead of today's monetary policy decision from the Riksbank.

A very close call

We are slightly leaning in favour of a rate hike today, even though we admit it is a very close call.

A hold may be accompanied by an acceleration in quantitative tightening.

The FX impact won’t just depend on the outcome, since there is a tangible risk of a split board, which could limit the upside potential for SEK in the event of a hike.