ECB and Riksbank in focus this week – BBH

Analysts at BBH explain that ECB and Riksbank meet will be the key economic events for the week.

Key Quotes

“The ECB meets this week.  The March meeting elicited a hawkish response from the market.  Draghi is likely to try to ensure a more dovish message is heard. His pre-weekend comments sketched his views.  He continues to see downside risks to growth and no evidence that inflation is on a rising trend.  Draghi reiterated that he anticipates rates will "remain at present or lower levels" for an extended period.  While no policy change is expected, there is scope to adjust the securities lending program to ease pressure on the repo market.”

“Sweden's Riksbank meets and policy is likely to remain on hold.  Its asset purchase program is on track to end in June.  The past rise in energy prices may spur the Riksbank to lift its inflation forecast.  Ahead of the weekend, the euro made new highs for the year against the Swedish krona.  On a trade-weighted basis, the krona has weakened by about 2.5% over the past month.”