Sweden's central bank in a unanimous decision left its policy rate unchanged at -0.50 percent and also left untouched the QE programme, which was extended in December to run throughout H1 2017. Sweden's Riksbank executive board also taken a decision to extend mandate that facilitates a quick intervention in FX market.

The central bank made no major revisions to Sweden's macro economic outlook. The inflation forecast was unchanged. CPIF-inflation is forecast to average 1.7 percent in 2017 and 1.8 percent in 2018 (previously 1.6 percent and 1.9 percent, respectively). Core inflation is forecast at 1.5 percent in 2017 and 1.9 percent in 2017 (previously 1.3 percent and 2.0 percent, respectively).

Economic development in Sweden since the December meeting has been favourable and mainly in line with the Riksbank’s forecast. The strong economy and anchored inflation expectations also support unchanged monetary policy. However, political uncertainty abroad is enhancing need for monetary policy to remain expansionary.

"We have pencilled in a first rate increase in April 2018 and a second one later that year, leaving the repo rate at 0.0% at the end of 2018," said Nordea Bank in a report to clients.

SEK slumps on repeated dovish tones from the Riksbank. USD/SEK was up 0.47 percent at 8.9746 while EUR/SEK was up 0.35 percent at 9.4699 at 1015 GMT.