Preview of the Riksbank meeting in Sweden via JP Morgan.
Coming up during the European timezone is the Swedish Riksbank meeting. The Executive Board's interest rate decision will be published, together with the Monetary Policy Report, at 9.30am local time (0730GMT).
This via JP Morgan:
- Uncertainty is high heading ... "not only because of the debate in the market as to what, if anything, the Riksbank should be doing at this relatively late stage in the cycle, but also the lack of clarity about what it could do, i.e. which of the five policy measures it has set out it will select from, if any."
- "Riba rate futures price close to a 10bpcut in the policy rate for this meeting, but certain analysts are calling for as much as 25bp in additional easing"
- Much expectation "for an extension of the Riksbank's balance sheet program, most likely through additional government bonds purchases (the existing SEK 40bn program will be completed next month, but there is also discussion of private sector purchases and/or credit easing through a BoE-style FLS program". That, says JPM is "somewhat odd as the housing market is booming and cracks have appeared in the mac-pru framework designed to address the risks to financial stability from super-easy monetary policy"
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Apparently the Riksbank isn't the only central bank announcement on Wednesday ... ;-)
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