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TD Securities analysis team points out that as per their expectations, the Riksbank turned dovish today, with a delay to their next rate hike to around the turn of next year and a slowdown in the pace of QE reinvestments through end-2020.

Key Quotes

“They also announced an end to coupon reinvestments. Their forecasts remain, in our view, over-optimistic, and we expect the next hike to come in February 2020, with a bias toward a later hike.”

“The Economic Tendency Survey for April was also released this morning, and showed better-than-expected results, with outright improvements in the headline, Consumer Confidence, and Manufacturing Confidence components.”