Riksbank raises its policy rate by 25bps to 2.00%, as expected; If the outlook for inflation and economic activity holds, it is likely that the policy rate will be raised further in the coming year
Newsquawk Staff ·
Policy path
- If the outlook for inflation and economic activity holds, it is likely that the policy rate will be raised further in the coming year, in line with the policy rate forecast in September.
Inflation
- Stronger economic activity combined with cost increases due to supply disruptions mean that inflation is expected to continue rising going forward.
- Global inflationary pressures remain elevated due to supply disruptions linked to the war in the Middle East. Energy prices have risen further and inflation abroad has increased.
- Overall, recent developments have largely been in line with the Riksbank's forecast, which implies that economic conditions are strengthening further and will become normal next year.
Economy
- According to preliminary statistics, GDP increased during the third quarter and employment rose, both in line with the forecast. Sentiment among households declined in October, but among companies it rose further.
Sources
- Daily US Equity Opening News - NVDA board considers CEO ouster after fresh affair allegations; Hon Hai Q3 net profit beat; CRWV slides on USD 4bln financing report; CTVA down on guidance cut; PFE & BX agree USD 1.5bln obesity co-funding
- EUROPEAN OPEN: NVDA falls amid further CEO allegations; Hon Hai Q3 profit tops expectations; SIE GY Q4 revenue beat, confirms SHL GY distribution; RR/ LN announces GBP 1.5bln buyback; MRK GY raises FY26 revenue & EBITDA view; HLAG GY lifts EBITDA guidance
- UK GDP Growth Rate Prel (Q3 QQ) 0.7% vs. Exp. 0.7% (Prev. 0.5%)
- IRGC says there were explosions affecting two tankers in the Strait of Hormuz; "Both vessels were super tankers carrying in total more than 4 million barrels of oil, which are now burning in the fire of trust in the plundering and aggressive US Army."
- BoJ Board Member Asada says must be mindful of expected impact of past rate hikes on the economy and that financial conditions remain accommodative, while he added that they need to watch downside economy risks from rate hikes
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