GBP/SEK holds at 19-year highs after Riksbank 50bp rate cut

The GBP/SEK currency pair held not far from yesterday’s near 19-year high of 14.0408 on Thursday, after Sweden’s Riksbank reduced its key policy rate by 50 basis points to 2.75% at its November meeting, in line with market consensus.

Focus now sets on the Bank of England policy meeting outcome.

The BoE is largely expected to cut its benchmark interest rate by 25 basis points to 4.75% at its November policy meeting.

In September, the central bank left borrowing costs intact, though one monetary policy committee member voted in favor of a 25 bps cut.

The annual CPI inflation is expected to accelerate to around 2.5% by year-end, as declines in energy prices in 2023 fall out of the annual comparison.

Annual headline inflation in the UK has eased to 1.7% in September, or the lowest rate since April 2021.

And, annual services inflation has slowed to 4.9% in September, which has been its lowest level since May 2022.

Investors will be looking for signals about subsequent BoE rate cuts following the government’s inflation-raising budget.

As of 9:07 GMT on Thursday the GBP/SEK currency pair was inching down 0.09% to trade at 13.9600.