Riksbank to keep the policy rate on hold at -0.50% - TDS

Analysts at TD Securities are in line with the unanimous consensus looking for the Riksbank to keep the policy rate on hold at -0.50% at 08:30 BST, and anticipate a 4-2 vote in favour of a hold.

Key Quotes

“The main focus for markets will be the Riksbank’s policy rate forecasts, especially as the timing of the first rate hike draws closer and closer.”

“While it’s a close call given the persistent downside surprises to the Riksbank's CPIF ex-energy forecasts, we believe that the inflation data overall has been just strong enough to allow the Riksbank to maintain its rate hike forecast for Q4 this year. However, views on this are mixed among the analyst community, and the odds of the Riksbank pushing back the first rate hike into Q1 are around 1 in 3 in our view.”