VIEW: Nordea writes "the Riksbank may......>

RIKSBANK: VIEW: Nordea writes "the Riksbank may take action any time now.

Measures to support businesses' liquidity will probably be the first step. We

also expect an extension of the QE programme, while the base case is that the

repo rate will remain unchanged. The coronavirus and its consequences for the

economy have changed the game plan for the Riksbank. Too low inflation is also a

problem for the Riksbank but currently not the focal point. The next monetary

policy meeting is scheduled to 27 April (announcement 28 April). That is too

late. In fact, measures may be presented any time now. The first step will be to

support businesses' liquidity situation and to prevent any credit tightening

from occurring. It is not a problem today but the measures will be a backstop in

case of need in line with what the ECB presented yesterday. We also expect the

Riksbank to announce an extension of the QE programme. The bank will buy

government bonds at an annual pace of SEK60bn, up from the current programme of

~30bn as planned for the H220, according to our new forecast. The extension of

the QE programme may be announced later than the measures to support businesses'

financing situation, but at the April meeting at the latest."