Sweden Riksbank to keep its repo rate unchanged

Sweden Riksbank might acknowledge that the recent uptick in inflation and medium-term inflation expectations merit a pause in the easing cycle at this juncture. 

Indeed, Swedish economic data have picked up recently, helping to alleviate pressure for additional easing by the Riksbank and supporting SEK appreciation from levels of significant undervaluation. 

This is illustrated by the recent uptick in our new Data Surprise Index for the Swedish economy. The SEK is expected to appreciate modestly and prefer to be short EUR/SEK ahead of the meeting.

"Riksbank is expected to keep its repo rate unchanged at -0.25% at its 2 July meeting, and make no changes to its current QE program", says Barclays.