Riksbank remains under pressure

There are indications that the Riksbank remains under pressure to meet its 2% inflation target. A dominating theme for the upcoming round of pay talks seems to be to safeguard the competitiveness of the Swedish corporate sector. Against this background no major pay rises is expected over the next couple of years, says Nordea Bank.

Meanwhile, much suggest that the SEK will appreciate over time, which would pull down inflation again. For example, the real exchange rate of the SEK is at historically weak levels. Add to this that the Swedish economy in many respects is in a better shape than for instance the Euro-area economy.