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Treasury, Currency Traders Can Do Well Without Forward Guidance
Policy makers in a much-overlooked corner of the world made a bold and telling statement on Thursday: the Swedish central bank raised interest rates, sparking optimism about the krona. In itself, that doesn’t sound like a big deal. But there is more to the increase than meets the eye. While a hike was eventually expected, the timing of it was a surprise. For, just at the previous meeting in February, the central bank had offered this guidance: The forecast for the repo rate indicates that it will be raised in the second half of 2024, which is slightly earlier than in the assessment in November. From there, the ... (full story)