The value of Sweden’s Krona decreased against the British Pound after the inflation rate in the Scandinavian country rose in December by 0.4%. At the foreign exchange market, the GBP/SEK exchange rate settled down -0.16 % at 12.3394, but the pair was seen quoted on Wednesday within a trading range of 12.3472 and 12.2978.

In Sweden, the annual inflation rate remained steady at 1.7% in December supporting the Riksbank’s decision to keep interest rates unchanged in the coming years. Sweden central bank hiked rates by 0.25% to 0% at its December meeting. The headline monthly rate of inflation for December confirmed the market forecast and picked up by 0.4% compared to 0.1% previous reading.

The acceleration in inflation was motivated by higher energy prices. The upward pressure from oil prices led to an increase in inflation in December. At the end of December, crude oil price rose to the highest level in 8 months trading for $64.0 per barrel.

Most Wall Street analysts are predicting inflation in Sweden to remain steady at 1.8% through 2020. The global headwinds will limit the Riksbank’s ability to fulfil its mandate and deliver its 2% inflation target.

From the other side, the UK inflation reading cools down to 1.3% in December, the slowest pace since 2016, said the Office for National Statistics on Wednesday. The inflation print has boosted speculations that the Bank of England will cut interest rates at its next policy meeting on 30 January. The rate of inflation was expected to come in at 1.5% below BOE’s 2% inflation target.

On the currency market, following the lackluster economic data, the British Pound dropped cautiously. The GBP to USD exchange rate seems to stabilize near the big psychological number 1.3000.

The GBP/SEK technical pattern seems to follow the bearish pattern started since the beginning of the week. The pair is witnessing again some downside pressure after Tuesday’s failed attempt to rally.

GBP/SEK was up 0.05% to 12.3461 in the late Asian session on Thursday. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.