The CAD/SEK currency pair pulled back from a 28-week high of 6.9099 on Tuesday ahead of the outcome of the Bank of Canada’s and Sweden’s Riksbank policy meetings.
The Bank of Canada is expected to keep its benchmark interest rate intact at 2.25% at its March 18th policy meeting.
Policy makers had said the current stance was appropriate given the BoC’s baseline economic outlook.
Yet, recent tariff threats from the US brought back concerns of trade disruptions and prompted the Governing Council to warn of uncertainty, potentially warranting a monetary policy adjustment in either direction.
In its quarterly monetary policy report, the central bank maintained its forecast for modest growth this year and in 2027, while inflation is expected to hover around the 2% target.
Meanwhile, Sweden’s Riksbank is expected to leave its key policy rate intact at 1.75% at its March 19th meeting.
Policy makers had 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 CAD/SEK currency pair was last down 0.74% on the day to trade at 6.7700.
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