2.02.2023

Leader or follower

Yesterday the Fed raised its policy rate, the eighth in a row. According to various strategists this hike is already priced in. The problem is that the market has only priced in one hike while Jerome Powell is talking about rate hikes in the plural for 2023.

The ECB in turn raised its policy interest rate today to 3%. The ECB President Christine Lagarde said at the press conference quote "we know we're not done yet" unquote but left an opening that the increase in March might not occur or at least will not be as large.

Sweden's National Bank AKA Riksbanken will issue its next monetary policy statement on February 9, 2023. Erik Thedeéns took office as Head of Riksbanken on January 1, this year. Time will tell if he will follow in his predecessor's footsteps and react to market forces or if he will take the initiative and act instead.

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