EUR/SEK is now trading at record levels. Economists at ING discuss the pair’s outlook ahead of the Riksbank meeting on 29 June.
We expect the Riksbank to sound the alarm about recent Krona weakness, but we doubt policymakers will want to pre-commit to another hike in September just yet.
Officials are now walking a narrow path between bolstering the currency and minimising damage to the real estate market.
Lingering dissent within the board can send EUR/SEK to 12.00 in the near term.