Riksbank on hold, Finland coalition talks to drag on

The Riksbank is all but certain to keep its repo rate unchanged at -0.25% at its policy meeting next week. Meanwhile, coalition negotiations following last week’s election in Finland are likely to drag on into May, but we think that the Social Democrats will eventually form a government with some combination of the smaller left-leaning parties and the Centre Party. Nonetheless, we do not expect to see a major change to fiscal policy in the near term.