Riksbank and Norges both likely on hold - BNPP

Research Team at BNP Paribas, suggests that they agree with consensus that the Norges Bank and Riksbank will leave rates unchanged this week.

Key Quotes

“According to the latest Reuters poll, 3 of 16 analysts expect the Riksbank to announce an extension of bond buying this week and an additional 6 expect an announcement in December. Our own view is that the Riksbank will end its program this year, implying scope for SEK recovery, if not this week, than later in Q4.

Elsewhere, we expect UK Q3 GDP to have expanded by 0.4% q/q, better than the 0.3% consensus and much better than initially feared after the referendum. We think the UK continues to face a tough path ahead, but current levels of the GBP already reflect a very poor outlook in our view, with valuations and positioning extreme.”