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MNI Riksbank Preview: 50bp or shock

RIKSBANK
  • This week’s Riksbank meeting is widely expected to culminate in a 50bp hike, despite the prior forward guidance strongly guiding towards 25bp and data for the first time in months not showing upside inflationary pressures relative to the Riksbank’s forecasts.
  • There are more uncertainties than expected in the upcoming meeting as we have a new Governor for the first time in almost two decades in Erik Thedéen as well as a new Deputy Governor, Aino Bunge.
  • A couple of potential curve balls that could potentially be discussed over the next few months for the Riksbank: first, the frequency of monetary policy meetings and second discussion of active sales of longer-dated government bonds.
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