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Analysts at TD Securities point out that the Riksbank announces its latest policy decision and while the consensus expects no change in policy itself, TDS expects the Executive Board to revise its forecasted path of interest rates lower on the back of significantly weaker inflation data in recent months.

Key Quotes

“Somewhat offsetting this forecast revision is a potential technical change to their reinvestment strategy, which could lead to smoother reinvestments (and on net, a slightly smaller QE portfolio).”

“The April Economic Tendency Survey is also released, and markets look for the headline index to 101.0 while we’re in line with the consensus looking for the Manufacturing Index to decline half a point to 107.0.”