The Riksbank kept its projection for interest rates unchanged at zero through 2023. But the central bank flagged in the accompanying monetary policy report that a stronger exchange rate is one of several factors that could bring negative rates back on the table. Sweden’s economy is then seen rebounding from the second quarter of 2021 so that it reaches its pre-pandemic level at the end of the year, in line with market’s view.
EUR/USD
The ECB said on Thursday it was increasing the overall size of its Pandemic Emergency Purchase Programme (PEPP) by 500 billion euros to 1.85 trillion euros. It extended the scheme by nine months to March 2022. Whilst on Friday, ECB policymaker Francois Villeroy de...