Sweden's growth rebounds after monetary stimulus
Sweden's krona rose to a seven-week high versus the dollar as the government boosted expectations for growth following months of interest-rate cuts and stimulus. The Scandinavian currency advanced versus all 16 of its major peers as the Finance Ministry said the nation's economy would expand 2.8 percent this year and next, exceeding a June forecast for 2.6 percent growth in 2015 and 2.7 percent in 2016.
The Swedish central bank has slashed interest rates to an unprecedented low and unveiled a program of bond purchases as it looks to boost growth and get inflation back on track. Both seem to be reviving, with Riksbank First Deputy Governor Kerstin af Jochnick saying inflation is developing in line with forecasts. "The overall growth picture we see as positive," said Ian Stannard, head of European foreign-exchange strategy at Morgan Stanley in London. "Some upbeat comments from Jochnick have probably helped as well. We have highlighted the krona as likely to be an outperformer."