The Riksbank still appears to the market to be too hesitant in the fight against inflation. Therefore, economists at Commerzbank expect the Krona to struggle.
No more upside potential for the time being
Although the Riksbank raised the key interest rate again in September, it is not acting decisively enough against inflation risks for the market. Therefore, the SEK will probably not have much upside potential this year.
Only next year, when the tide turns in favour of the Riksbank, should the Krona appreciate again.
Source: Commerzbank Research
