Sweden exits negative rates & oil weakens Norway’s krone
By Erik Norland, Senior Economist, CME Group
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Sweden’s Experiment with Negative Rates
- Sweden takes the lead in exiting negative interest rates.
- Sweden’s Q1 economic activity outperformed the Eurozone’s.
- Swedish exports likely to fall amid sluggish Eurozone growth.
- Krona has fallen 19% against euro, 34% vs. US dollar since 2012.
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Norway’s Krone Tracks Commodity Exports
- Norwegian krone weakens amid sliding oil output, lower prices.
- Krone has fallen against euro, British pound, and Swedish krona.
- Weaker krone could help cushion pandemic’s economic fallout.
- Could Norway be heading toward a severe recession?
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