The announcement of interest rates by the Riksbank lowered the Swedish krona – even the euro is down

Riksbank left as The expected interest rate remained unchanged at -0.50% and still showed an increase of 25 points in December or February.

The message was fully in line with expectations, but what strikes is that Martin Flodén created Henry Ohlsson's company and voted for an interest rate increase of -0.25%.

Martin Flodén spoke about the inflation rate and increased confidence in the goal of inflation. He advocated an interest rate trajectory that coincides with that of the report from the third quarter of 2019.

Henry Ohlsson spoke of the strong economic development in Sweden and internationally. He advocated an early interest rate trajectory with the same slope as that of interest rates in the monetary policy report.

To Martin Flodén Joined Henry Ohlsson's Camp and Resolved Against Interest Rate Decision, Knut Hallberg, Senior Economist Swedbank, as the most interesting.

Otherwise, the message was "expected, neutral and incapable," he told the Direkt news agency.

Michael Boström, Head of Analysis at Danske Bank, thought the message was "quite expected", even though they thought the Riksbank would have risen for the first interest rate hike in December, believing that inflationary developments and inflationary expectations would cross this step.

He also noted that the Riksbank said that uncertainty had increased, particularly with the developments in Italy and in the trade dispute between the United States and China.

The Swedish krona lost 2 pence against the dollar on Wednesday, while Sweden closed Tuesday at 9:08. Against the euro, it was strengthened until 10:36. The ten-year Swedish interest rate fell 1 point to 0.64%.

The euro fell the lowest level of two months in the morning after concerns about growth in the euro area. At the close in Sweden, he was trading around 1:14 against the dollar.

The preliminary PMI for the euro area fell to 52.7 in October from 54.1 the previous month.

Chris Williamson, chief economist for Markits, said in a comment that the growth rate was significantly lower in October.

The decline is due to the decline in exports, which many respondents have to do with the customs war and trade. Something that seems to have weighed on the world's economic environment and leads to increased risk aversion.

Chris Williamson also notes that the main figure is historically in line with the easing of monetary policy.

Germany partly contributed to the decline, with the sector weighted purchasing index (the composite PMI) falling to 55.7 in October, after 55.0%. the preceding month.

Markit economist Phil Smith said in a comment that the report offered an unpleasant reading. The data indicated a decline in the growth rate in all measures.

"The increase in overall activity was the weakest in almost three and a half years, reflecting not only the decline in output growth in the manufacturing sector, but also a decline in the services sector previously reliable, "he said.

The growth of the manufacturing sector has diminished over time, so it is not surprising that the weakness of the service sector is over, "said Phil Smith.

The preliminary industrial PMI for France fell simultaneously to 51.2, the lowest level in 25 months.

Jan von Gerich on Nordea wrote that the trade war clearly damages the euro area more than the United States, but that the data are not yet sufficient to modify the exchange rate of the ECB.

Preliminary Purchasing Manager Index for The United States, however, came slightly stronger. The combined PMI reached 54.8 preliminary in October, compared to 53.9 the previous month.

Chris Williamson, chief economist at Markit, said in a commentary that the preliminary PMI indicated that economic growth was further strengthened in October after being written off in September, mainly because of bad weather.

The Bank of Canada raised its key rate by 25 points to 1.75% on Wednesday, against 1.50%.

The increase was expected by 34 of the 36 analysts participating in the quiz on Reuters forecasts.

BOC removed the wording of a "phased approach" and added wording on the need to raise interest rates to a level that is no longer expansive.

"The board of directors agrees that the key rate will have to be high to achieve the goal of inflation," he said in a statement.

The Canadian dollar has strengthened about 0.6% after the message.