, Columnist
Don’t Bet on a Relief Rally in Sweden
Whatever the election result, the central bank looks to be in no hurry to raise rates.
The posters may not be going down for long.
Photographer: Mikael Sjoberg/BloombergThis article is for subscribers only.
Whatever the result of Sweden’s election, don’t expect the krona to arrest its seven-month slide. The central bank appears to be in no hurry to raise interest rates. Any relief rally after this weekend’s vote is unlikely to be long-lived.
A clear outcome looks unlikely. With neither of the country’s two political blocs looking likely to win a majority, the risk of protracted coalition negotiations or another election are high. Support for the nationalist Swedish Democrats is also surging.