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CORRECTION: The last bullet refers to......>

RIKSBANK
RIKSBANK: CORRECTION: The last bullet refers to the Riksbank not the Norges
Bank.
Nordea's view ahead of Wednesday's Riksbank announcement:
- Repo rate forecast at zero "possibly with a cosmetic increase at the end of
the path three years from now."
- Riksbank likely to present with economic forecasts, not just scenarios.
- Likely to "leave door ajar for a cut" but in "verbal form rather than
reflected in the rate path".
- Nordea note that Riksbank haven't ruled out a cut "once the situation has
normalised" but think more QE is more likely. No new QE likely until September
or November, however.
- The Riksbank "may change the system of policy rates longer out. This way the
policy rate can be kept at zero while the corridor around the repo rate is
widened so that some of the bank's excess liquidity will be invested at
considerably lower levels." Nordea note that this would be a similar policy to
the ECB.

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