In our podcast Macro Strategy Views, we discuss the weakening Swedish economy, the Riksbank meeting this week and the market implications. Global Head of FI&C Research Thomas Harr chairs today’s podcast, while our Chief Economist in Sweden Michael Grahn joins him.
Domestic demand is weakening in Sweden, the labour market is showing clear signs of softness and inflation expectations are falling. We expect the Riksbank to roll its forward guidance this week ahead of the ECB and cut rates in February. We discuss the risk of QE and market implications.