Research Team at BBH, notes that the Sweden's Riksbank surprised the market by delivering a 15 bp rate cut today to take the repo rate to minus 50 bp. Key Quotes “The Riksbank's main challenge is deflation. The market had favored a 10 bp rate cut, but the OIS market appears to be pricing in a 20 bp rate cut by the ECB next month. The Riksbank decision was not unanimous. Both Ohlsson and Floden, the two deputies, dissented, favoring unchanged rates. The latter also was opposed to intervention in the foreign exchange market which the central bank threatened. More color on the debate will be provided by the meeting's minutes that are released in two weeks. The euro initially spiked to SEK9.61, the highest since last August. The euro's gains were subsequently unwound, leaving it near SEK9.50 near midday in London. It had closed near SEK9.45 yesterday.” For more information, read our latest forex news.