It’s a very different story in Sweden: The Riksbank is widely expected to embark on its rate-cutting cycle today, after signalling at its last meeting an intention to ease either this month or next.
Inflation is close to target, the economy has slowed sharply, and a weak currency has become a headache, leading analysts to pencil in a full percentage point of reductions to put the key rate at 3% by year-end.
The Bank of England announces policy on Thursday, and while no change is predicted this week, dovish bets have risen recently. Traders now price two quarter-point cuts this year, with odds for whether the first comes in June or August a coin toss.
Wednesday’s data calendar is light in Europe, consisting mainly of some German factory numbers.
The corporate calendar is heavy by comparison though, featuring earnings from such names as AB Inbev, BMW and Continental.
