The Riksbank announced its latest monetary policy decision at 8:30 BST, hiking the repo rate by 50bps to 3.5%, in line with market and analyst consensus.

As expected, it wasn’t the policy decision that moved markets, but instead the corresponding guidance provided by the central bank which was almost uniformly dovish. While the central bank’s repo rate projections indicated a 25bps hike was likely at either its June or September meeting, confirming the markets priors of a terminal rate of…