ECB announcement: Moderately lower pace of net PEPP purchases
In line with our expectations, the European Central Bank (ECB) decided to reduce its net asset purchases under the Pandemic Emergency Purchase Programme (PEPP) during the fourth quarter of 2021. According to ECB President Christine Lagarde, the economic recovery will allow a “moderately lower pace” of asset purchases compared to the current approximately EUR 80 billion per month. Lagarde also emphasised the flexibility of the programme and the possibility of increasing asset purchases again if necessary.
Home price expectations among Swedish households rebound slightly
SEB’s Housing Price Indicator, which measures the percentage of respondents who believe prices will rise minus those who expect them to fall, rebounded slightly from 39 in August to 41 in September, according to figures published this past Monday. Swedish households now expect the repo rate (currently 0%) to stand at 0.55% a year from now, compared to 0.48% in last month’s survey. This increase in key rate expectations may reflect a belief that Sweden's Riksbank will undertake some monetary policy tightening after a period of powerful stimulus measures, according to SEB’s household economist, Américo Fernández.
Worth watching this week
After last week’s focus on Europe, markets have turned their attention again to the US. Yesterday the Bureau of Labor Statistics announced that consumer price index (CPI) inflation had risen by 0.3% between July and August, for a year-on-year increase of 5.3%. CPI less food and energy rose 4.0% during the year to August. US industrial production figures will be released on September 15 (today) and US retail sales statistics on September 16. China is releasing industrial production and retail sales figures on September 15.
New Investment Outlook report has been published
On September 14 (yesterday), we published the latest issue of our quarterly Investment Outlook report, where you can read more about our forecasts for equities, fixed income investments and other asset classes as well as theme articles on interesting current trends. For further information, see below.