On 1 February, the Riksbank is announcing it´s rate decision. The market pricing is distinctly for no change. However, since the last rate hike in September 2023, the market has moved aggressively and now price in a rate cutting cycle starting in May (80% of a 25bp cut priced in) and ending at around 2.50% about a year later. There is not yet any validating indications from the Riksbank that the market is on the right track, so this time, all eyes will be on any guiding light that could validate (or disaffirm) the current market pricing. For those interested to figure it out on your own, how to calculate what is being priced in, reach out on info@nordend.se, and we gladly pass along our Excel sheet.
