Riksbank: Unchanged repo rate, lower path and less bond buying – Nordea Markets

Mats Hydén, analyst at Nordea Markets, notes that the Riksbank has kept its repo rate unchanged at -0.25%, while the repo rate path was revised downward significantly.

Key Quotes

“The phase of bond buying roughly cut in half.”

“Rate path: large downward revision of path. Significantly lower probability for another hike this year.”

“QE: 45 bn will be bought between July 2019 and December 2020. This corresponds to half the current buying phase.”

“Macro forecasts: CPIF revised down 2019 as expected.”