Analysts at Danske Bank, note the main takeaways from the meeting of Sweden's central bank (Riksbank; RB) was that there is no change to the repo rate path vs. April where a reduction was expected.

• “No change to QE, in line with expectations. No reservations to the decision. Very small changes to the macro forecast, both growth and inflation. In essence, a "wait and see"-meeting.
• Our take: The Swedish economy is described as strong with resource utilization still higher than normal. Riksbank acknowledges that global risks appear to have intensified but this has not been incorporated in the KIX-weighted policy rate forecast (ECB, Fed, BoE and Bank of Norway). That is slightly reduced but sees higher rates in 2021.
• Though the RB remains open to the idea that the trajectory for the repo rate may need to be altered if the outlook for inflation changes, the fact that the RB chose not to adjust their repo rate forecast is no doubt bearish.”