Per Jansson News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Today, two Riksbank board members will give speeches on monetary policy and the economic outlook, Aino Bunge (8.30) and Per Jansson (16.00). It will be very interesting to hear their comments on the benign March inflation print and the recent global developments, in particular how they assess the perception of delayed rate cuts by the much-important Fed, the sharp weakening of the SEK over the last couple of weeks, and how these factors affect their view on near-term monetary policy where pricing is skewed for a cut in May.

Yesterday's big market driver was the US March CPI print which surprised to the upside as headline printed at 0.4% m/m (cons: 0.3%) and core at 0.4% (cons: 0.3%). Especially worrying for the hopes of a Fed rate cut was the fact that broader core services drove the upside surprise (services ex. shelter at 0.8% m/m), which rhymes well with recent signs of continuing strong wage inflation and a tight labour market. Underlying price pressures not only remain too high for comfort, but also show signs of accelerating in early 2024. The market reaction was strong, as markets scaled back expectat...

Fed's Barkin spoke at the Economic Club in New York City. He said it was wise for the FOMC to take its time before cutting rates, so as not to risk inflation reemerging. Barkin underlined that a very strong labour market, as well as strong demand gave the FOMC time to wait before beginning to cut rates. We believe the Fed will cut rates four times in 2024, whereas markets currently price in almost five cuts.

Following the airstrike launched by the US and UK against Houthi rebel target in Yemen overnight (see more below), geopolitics will be on top of the agenda.

The Swedish Krona fell sharply after Thursday’s speech by Per Jansson, the Deputy Governor of the Riksbank.