Sweden's Riksbank policy preview

Riksbank is due its policy decision next week, it is mostly expected to be on hold in its repurchase rate, at the current 0.35%.

"Our base case scenario for the Riksbank's rate decision next week (15 December) is an unchanged repo rate at -0.35%. Read more here. Given the current market pricing, we would rather be long than short SEK rates over the meeting, especially after the recent low inflation impulses. 

Since last policy meeting at the end of October; much stronger Q3 GDP and previous quarters were revised, Fed's hawkish communications and high probability for December rate hike, ECB depo rate cut by 10 bps, lower Swedish inflation rate in November, along with lower oil prices will pull CPIF in December close to 0.4% below Riksbank's forecasts.