Divisions to test compromises at the Riksbank

While the Riksbank presented a united front at its meeting this week, we suspect that differences in opinion amongst Board members on how to proceed with the asset purchase programme will become more apparent later this year. We think it more likely than not that the purchase envelope will be increased again before long. Next week, data are likely to show that Danish GDP data grew by about 1% q/q in Q4, while energy effects look set to to have boosted Swedish headline inflation in January.