27 Feb 2015
Sweden’s robust retail sales signals Riksbank will keep policy steady – BBH
FXStreet (Barcelona) - According to Brown Brothers Harriman, the 1.2% jump in retail sales and above consensus Q4 GDP growth in Sweden suggests that the Riksbank will not be in a hurry to extend its accommodative efforts.
Key Quotes
“Sweden reported Q4 GDP growth of 1.1% quarter-over-quarter, which is twice the consensus expectation. The Q3 growth of 0.3% was revised higher to 0.5%.”
“The positive momentum spilled over to the January retail sales report, where sales jumped 1.2%, fully recouping December's 0.6% decline.”
“The lowflation and now outright deflation (January CPI -0.2% year-over-year) has not hobbled the economy. And what the retail sales figures mean is that Swedish consumers are not hunkering down anticipating lower prices in the future.”
“On the other hand, it is the deflationary conditions that prompted the Riksbank to adopt negative deposit rates and initiate a small bond buying program.”
“Today's data suggest the Riksbank will not be in a hurry to extend its current accommodative efforts.”
Key Quotes
“Sweden reported Q4 GDP growth of 1.1% quarter-over-quarter, which is twice the consensus expectation. The Q3 growth of 0.3% was revised higher to 0.5%.”
“The positive momentum spilled over to the January retail sales report, where sales jumped 1.2%, fully recouping December's 0.6% decline.”
“The lowflation and now outright deflation (January CPI -0.2% year-over-year) has not hobbled the economy. And what the retail sales figures mean is that Swedish consumers are not hunkering down anticipating lower prices in the future.”
“On the other hand, it is the deflationary conditions that prompted the Riksbank to adopt negative deposit rates and initiate a small bond buying program.”
“Today's data suggest the Riksbank will not be in a hurry to extend its current accommodative efforts.”