GBP/SEK settles flat for the week after cenbank meetings

The GBP/SEK currency pair settled almost flat for the week in the wake of the Bank of England’s and Riksbank’s policy decisions.

Sweden’s Riksbank left its key policy rate intact at 2.25% at its March meeting, highlighting a largely unchanged inflation and GDP growth outlook.

Policy makers said they expected inflation would remain above the 2% target for the rest of 2025 before stabilizing near that level in 2026.

At the same time, economic recovery is on track, underpinned by rising real wages, lower interest expenses and higher defense and government spending.

Still, policy makers cautioned that risks continued to persist – most notably, escalating US trade conflicts, geopolitical tensions in Europe, the Krona exchange rate as well as shifts in household spending and corporate investment.

Meanwhile, the Bank of England maintained its benchmark interest rate at 4.5% at its March policy meeting, in line with market consensus.

BoE policy makers adopted a wait-and-see approach as inflation remained elevated and global economic uncertainties persisted.

One Monetary Policy Committee member, Swati Dhingra, has voted in favor of a 25 basis point rate cut to 4.25%.

The BoE has delivered three rate cuts since the beginning of its monetary easing cycle in August 2024.

Given the medium-term inflation outlook, BoE policy makers considered a gradual and cautious approach to further monetary easing as appropriate.

Despite a drop in global energy prices, the BoE now forecasts a peak inflation rate of 3.75% by the third quarter of 2025.

The GBP/SEK currency pair settled 0.33% lower at 13.1010 on Friday.

The exotic Forex pair lost a mere 0.05% for the week.