Riksbank likely to stand pat - BBH

Research Team at BBH, suggests that the Sweden's Riksbank meets this week and it is likely to stand pat, with an exceptional ease stance of negative rates and bond purchases.

Key Quotes

“The deflationary forces that the central bank is battling have not hobbled the economy. The economy is growing among the fastest in Europe (3.8% in 2015 and is projected to expand at a 3.5% pace this year). It enjoys a large current account surplus of almost 6% of GDP. Its monetary policy stance seems an exaggerated response to what appears to be price stability. The CPI was zero in 2013, -0.2% in 2014 and -0.1% in 2015.”