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

- Bonds & Currency News | Market News" >
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."
- Bonds & Currency News | Market News" >
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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