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Riksbank Preview: November 2020 - A finely balanced decision

Riksbank 2
  • The Riksbank faces a dilemma at its meeting this week. Asset purchases are already confirmed until the middle of 2021 but other major central banks across Europe are going to end up with easier policies unless the Riksbank acts at this meeting.
  • The MNI Markets team thinks that with economic scarring expected to be greater than anticipated back in September, with the ECB likely to act more aggressively (and hence the krona appreciating more than had been expected) and with concerns about the credibility of the inflation target, the Riksbank will be pushed towards a QE extension of SEK100bln until the end of 2021, but acknowledge that the call is likely to be very close.
In our Riksbank preview, we include the summaries of 12 sellside notes and also summaries of the key comments from each member of the Executive Board in either the September Minutes or more recently, if relevant.

MNI Riksbank Preview - Nov 2020.pdf

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