Riksbank could decide to provide hawkish rate path guidance today - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that the ECB and, first, the Riksbank top today’s agenda.

Key Quotes

“The time for Swedish policy normalisation is approaching, and the Riksbank could decide to provide hawkish rate path guidance today, but that would be a rather bold signal that would be out of character for the Riksbank. The Riksbank remains averse to rapid krona appreciation. But the market is forwardlooking, and the policy implications of the growth upturn in Sweden are all too clear. As for the ECB, the euro is pressuring them to delay an announcement about tapering their bond purchases, but Anatoli wonders if there’s any point delaying. A ‘tapered extension’ with 6 months of buying at a slower pace, makes more sense.”