EUR/SEK: Only next year should Krona be able to appreciate again – Commerzbank

The Riksbank decided against hiking its key rate in November. Krona traded weaker following the rate meeting. Economists at Commerzbank analyze SEK’s outlook.

Riksbank remains cautiously restrictive, but not enough

The Riksbank didn't raise the policy rate in November but has not ruled out a further increase at the beginning of 2024. From a market perspective, it is still not acting decisively enough against inflation risks. Therefore, the SEK will probably have no more upside potential this year.

Only next year, when the tide turns in favor of the Riksbank, is the Krona likely to appreciate again.