NOKSEK Exchange Rate

Sweden's central bank indicated that it will cut the interest rate in May or June as the economy is expected to remain mired in recession, provided the inflation prospects remain favorable. The Executive Board of Riksbank decided to hold the policy rate at 4.00 percent on Wednesday, as expected. It is likely that the policy rate can be cut in May or June if inflation prospects remain favorable.

Sweden's central bank on Thursday left its key interest rate unchanged for a second straight session, as expected, and suggested that a rate cut would be possible in the first half of the year. The Executive Board of the Sveriges Riksbank, led by Governor Erik Thedeen, left the key policy rate steady at 4.00 percent.

Finnish network company Nokia Corp. reported Thursday a loss in its fourth quarter, compared to prior year's profit, amid weak net sales. Looking ahead, the company expects challenging environment to continue, particularly in the first quarter. Further, the Board proposed dividend authorization of 0.13 euro per share and initiated two year 600 million euros buyback program.

Sweden's central bank unexpectedly paused its monetary policy tightening but expressed willingness to raise the interest rate further if the inflation outlook deteriorate. The executive board of Riksbank decided to leave the policy rate unchanged at 4.00 percent, confounding expectations for an increase of 25 basis points.

Last week's US core PCE data surprised us with an upside surprise, prompting me to expect a further increase in US terminal rate expectations and consequently, the strength of the USD.