Riksbank Preview (2/2)

The Riksbank's corporate bond and mortgage bond purchase programme is seen as much more controversial than the sovereign bond purchase programme and the level of criticism has been a lot more widespread than other central banks that have launched QE programmes over the previous few months. However, with purchases only actually beginning this month, it is unlikely there will be any near-term changes to the programme.

Outside of the repo rate forecasts and any discussions surrounding negative rates, the main risks lay in any comments on the currency. Ingves has sounded unconcerned about the appreciation of the krona recently so it would be a surprise if the Riksbank changed its tone and flagged concerns over the strength of the currency. Indeed, if the Riksbank was that concerned with the level of the currency, it may even be concerned enough to put in a token chance of a rate cut in the repo rate forecasts rather than leaving them flat through 2023.

For the full document including 10 sell side summaries see: https://emedia.marketnews.com/MNI_Riksbank_-_Sep_2020.pdf