Pursuits
Here's One Europe Central Bank Turning Corner With Its Currency
- Sweden seen easing policy this week after ECB's signal on QE
- Yet Riksbank still seen tightening in 2016; krona to gain
The headquarters of the Swedish Central Bank in Stockholm, Sweden.
Photographer: Casper Hedberg/BloombergThis article is for subscribers only.
Next year’s looking like when Sweden will finally learn to live with a stronger krona.
After another bout of easing this week to counter the extra stimulus hinted at by the European Central Bank, the Riksbank will start reining in the measures it’s been using to combat deflation, according to Nordea Bank AB, Scandinavia’s biggest lender. SEB AB, the region’s top currency trader, says the change of tack will send the krona surging about 6 percent against the euro by March, more than wiping out the declines caused by interest-rate cuts and bond purchases.