Nordea’s chief analyst Torbjorn Isaksson – Dagens Industri

          Nordea’s Chief Analyst Torbjorn Isaksson
           
         
       

 The Riksbank will lower the repo rate at the next monetary policy meeting, on 2 July. Depending on how the exchange rate development may be a rate cut to come already in May.
 

“So was prepared action also between the monetary policy meetings, such as the Executive Board meetings that are not advertised as monetary policy meetings ( 8 May 18 May 1 June and 22 June. “

He notes that The National Bank surprised markets by leaving the repo rate unchanged on Wednesday, although it also announced new government bond purchases in line with Nordea’s forecast.

Wednesday’s statement suggests, under the Nordea economists, an altered Governor Strategy. The Riksbank continues to stress that it is ready to do more, but it now appears to be more on the sidelines with a more reactive stance than before.

“That means that instead of acting proactively and surprise markets to introduce strong measures in the short term seems the bank is now more inclined to act when necessary, “wrote Torbjorn Isaksson.

He notes that krona strengthened after the Riksbank announcement,” and this trend can now continue “

” This, together with Bank clear relief bias, suggesting that the bank will cut interest rates again. We expect that the repo rate will be lowered by 15 basis points, and the bottom at -0.40 percent, “wrote Torbjorn Isaksson.

A further expansion of the program of government bond purchases can not be ruled out, but Nordea believes that a program of loans to companies, through banks, is a more likely next step for the Riksbank.