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Riksbank likely to cut rate by 10bp

As a result of last week's disappointing ECB meeting, along with Swedish data, there is somewhat increased pressure on Riksbank in the near term.

The KIX recently gained strength and this week's inflation data will be of much importance. There is a cut expected in the Riksbank's rate narrowly.

"We continue to forecast a 10bp Riksbank rate cut, but see an increased risk of no policy action. We forecast CPIF inflation to have increased by 0.1% m/m (1.2% y/y) relative to a consensus print of 0.0% m/m (1.1% y/y), which if confirmed should benefit the SEK and continue the recent inflation uptrend", says Barclays in a research note. 

There are broadly stable inflation expectations, the inflation developments this week, along with SEK's behaviour might play important role further in the December meeting. 

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