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MNI's policy Team highlight Krona............>

SWEDEN
SWEDEN: MNI's policy Team highlight Krona depreciation is not likely to sway the
Riksbank at today's meeting (0730GMT) with no change in policy anticipated. (See
MNI Main Wire Sep5 1719BST). The report adds, Swedish krona's eye-catching fall
in recent days against the euro, with the single currency hitting its highest
level since 2009, is not going to be enough to trigger concerns of a marked
inflation overshoot.
- RBC look to forward guidance on rates in the Monetary Policy Report. It adds,
the MPR would need to be very dovish to justify current market pricing. OMX RIBA
futures imply a much shallower path for the repo rate than the Riksbank's
forecasts. Most importantly, the Q1 average rate of -41bp implies very little
risk of a Q4 2018 hike and compares to the Riksbank forecast of -27bp, implying
a hike is highly likely.

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