The GBP/SEK currency pair pulled back from an over 2-week high of 12.3302 on Monday, as renewed expectations of a Bank of England rate cut mounted pressure on the Pound.
The Bank of England left its benchmark interest rate intact at 3.75% at its February 5th meeting, in line with market consensus.
Yet, it was a narrow 5 to 4 vote, as officials weighed easing inflation pressures against risks stemming from a weakening economy.
Four members voted in favor of a 25 basis point cut, which highlighted growing divisions within the Monetary Policy Committee.
This reinforced perceptions of a more dovish stance and contributed to GBP softness.
Meanwhile, in Sweden, annual inflation has accelerated to 0.4% in January from 0.3% in December, preliminary data showed.
And, Sweden’s consumer price index with a fixed interest rate (CPIF), Riksbank’s target variable for inflation, went up 2% year-on-year in January, easing from 2.1% YoY in December.
Riksbank left its key policy rate intact at 1.75% at its January meeting.
Policy makers again indicated that borrowing costs would likely remain at this level for some time, as they assess the impact of the current policy stance.
Still, Riksbank warned that uncertainty over inflation and growth had risen, driven in part by geopolitical tensions and shifts in US trade and foreign policy.
The GBP/SEK currency pair was last down 0.45% on the day to trade at 12.2177.
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