Analysts at TD Securities point out that as per their expectations, the Riksbank has delayed their next repo rate hike to around the turn of next year (from the second half of this year), reduced the pace of their reinvestment purchases from Jul-19 to Dec-20, and stopped reinvesting coupon payments.

“The Riksbank's dovish policy path supported a rally in SEK rates across the board. Markets are currently pricing a 25bps rate hike only by end 2020. With respect to QE reinvestments, today's policy announcement marks the first step towards balance sheet normalization. We think EURSEK's spike above 10.65 looks excessive to what is, essentially, a catch-up move. We think investors with short time horizons could chase a pullback move, but the longer-term uptrend seems well entrenched for the cross.”