Riksbank Surprises With 100 Bps Hike to 1.750%

The Riksbank of Sweden announced a larger-than-expected rate hike to 1.75%, surprising market participants who anticipated a rise to 1.5%. This move led to a gain in the Swedish krona against the euro. The Riksbank's decision is part of a broader trend among G10 central banks to implement significant rate hikes, a strategy typically seen in emerging markets. This trend is influenced by pressures from larger central banks like the Fed, which is considering further rate increases. Markets are now adjusting their expectations for future rate changes, with the Fed's peak rate anticipated to reach 4.5% by early next year before declining.

What was the unexpected move made by the Riksbank regarding its benchmark rate?

• They increased it to 1.75%

• They increased it to 2.0%

• They kept it unchanged at 1.5%

• They decreased it to 1.25%

What is one of the main reasons for the Riksbank's decision to hike rates?

• To stabilize the stock market

• To control inflation running at 9%

• To decrease unemployment

• To boost exports

What action is the Riksbank planning regarding asset purchases?

• Increase asset purchases

• Cease asset purchases by the end of the year

• Maintain current asset purchase levels

• Sell off all assets

Which central bank's actions are influencing smaller nations to consider larger rate hikes?

• Bank of Japan

• European Central Bank

• Federal Reserve

• Bank of England

What is the expected peak terminal rate for the Fed in the first quarter of next year?

• 3.5%

• 4.0%

• 4.5%

• 5.0%