Nordea have changed their call and now.......>

SWEDEN: Nordea have changed their call and now expect the Riksbank to stay on

hold throughout 2019.

- Our new forecast is that the Riksbank will keep the repo rate unchanged at

-0.25% during 2019. The Riksbank will hike rates once in mid-2020 to 0.0%. The

repo rate will thus be 0.0% in December 2020. Our previous forecast was rate

hikes in December 2019 and in July 2020, leaving the repo rate at +0.25% by

year-end 2020, in line with Nordea's previous forecast on the ECB.

- The reason for the change is due to Nordea's new forecast on the ECB.

- We keep our long-held view that the Riksbank will not see any domestic reasons

to hike rates the coming years as inflation will be too low and GDP growth will

slow. Instead, we expect the Riksbank to track the ECB. Low rates will support

the economy, in particular the housing market, but rather reducing downside

risks than warranting any upward revision of forecasts.