Friday, June 24, 2016

Swedbank: Expect turbulent market – Private Businesses

She notes that both the British and the international central banks stand ready to act, and they may also coordinate their efforts.

“First, central banks clearly emphasizing its readiness to act as a ‘lender of last resort’. Second, central banks intervene in currency markets to counter high turbulence. Thirdly, if the concern is so great that it threatens to affect long-term economic development negatively, central banks may introduce further monetary stimulus to counter a downturn, “writes Anna Breman.

Regarding the Riksbank assesses the chief economist of the indefinite waits, but keeps high alert for severe chronic movements,” especially if it is strengthened quickly. “

“Will the global financial markets in the long term uninspiring, the European Central Bank stimulates additional or inflow to the crown large, however, the period of low Swedish interest rates extended,” writes Anna Breman.

She adds that the Riksbank in a such a scenario could be forced to currency intervention and / or additional relief.

“In this scenario, asset purchases and a lower repo rate path is more likely than a further repo rate cut” continues chief economist.

She also recalls EU Parliament President and the leaders of various EU bodies should meet to discuss the results of the referendum on Friday.

“politicians and central bankers will do everything to signal stability and security. This is also Sweden’s representatives, “writes Anna Breman.

LikeTweet

No comments:

Post a Comment