The SEK/NOK currency pair settled below recent high of 1.1012, its strongest level since April 10th, in the wake of Sweden’s Riksbank and Norges Bank’s policy decisions.
Sweden’s central bank left its key policy rate intact at 1.75% at its December meeting, in line with market consensus.
Policy makers again indicated that borrowing costs would likely remain at this level for some time.
The Riksbank noted that economic prospects had improved, while inflation was approaching the 2% target.
The central bank has revised up its GDP growth forecast for 2026 to 2.9%, while CPIF is forecast to ease to 0.9% in 2026 before moving up towards 2% in 2027.
Meanwhile, Norges Bank left its key policy rate without change at 4% at its December meeting, in line with market consensus, while indicating no rush to lower rates.
The central bank highlighted that a restrictive monetary policy was still necessary, with inflation above target and underlying inflation hovering near 3% for some time.
While the outlook remains uncertain, the central bank reiterated that in case the economy developed broadly as projected, the policy rate would likely be reduced further next year.
The central bank projects one or two rate cuts in 2026.
The exotic Forex pair gained 0.10% for the week.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
