SaxoTV

Koefoed: The Swedish rate cut is an 'over-reaction'

221 views
October 28, 2014 0, 0%, borrowing, business, content, currencies, currency, currency rates, cuts rates, deflation, dollar, dollar high, economy, eursek, finance, foreign exchange, forex, forex markets, fx, gdp, inflation, koefoed, krona, krone, lending, macro, mads, markets, news, noksek, over reaction, overreaction, rate cut, rate cuts, rates decision, repo, riksbank, saxo, saxo bank, saxo tv, scandinavia, scandis, sek, seknok, sweden, sweden cuts rates, sweden growth, sweden rate decision, sweden rates, sweden unemployment, swedish, swedish central bank, swedish economy, swedish gdp, swedish krona, swedish kronar, swedish krone, swedish kroner, swedish unemployment, television, traders, trading, tradingfloor.com, tv, tv news, unemployment rate, unemployment sweden, usd, usdnok, usdsek, video, zero
Has Sweden's Central bank over-reacted by cutting its main repo rate to zero percent? Saxo Bank's Head of Macro Strategy, Mads Koefoed thinks so. USDSEK rose again to a one year high following the move and Mads we could easily see USDSEK 8.00 very soon.
The Riksbank said deflation is a major worry and that's one of main reasons it cut rates this Tuesday. Mads suggests it's gone too far as growth and household spending are looking strong.