The latest run of weak data from Sweden is unlikely to sway the Riksbank from hiking on the 19th December, but only reaffirms our view that the Bank will have to loosen policy next year. We think that the repo rate will remain the go-to policy lever, but purchases of Swedish corporate bonds could have a part to play in the future. Meanwhile, although the Swiss National Bank is set to keep its policy settings unchanged yet again next week, we expect its updated forecasts to indicate that it is getting increasingly concerned about deflation. Next stop, -1.00%.
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