Main event is the ECB meeting. We do not expect rate cuts or QE in connection with the meeting but all options are expected to be left open. After Draghi's dovish speech at Jackson Hole the statement could include comments that there are signs that medium-term inflation expectations have started to de-anchor and that the ECB is ready to go down the QE path in case it continues. We expect the ECB to reveal more details about the ABS programme, which should contribute to further credit easing, see Will ECB Easing Work?.
In the US, focus is on the labour market ahead of Friday's job report. We look for a positive surprise with a solid increase in non-farm payrolls of 260,000. ADP employment and initial jobless claims are due for release. The latter have been very low in historical context and point to robust job market, see S Labour Market Monitor: Job Growth Is Strengthening.
In the UK the Bank of England is expected to keep rates unchanged. Minutes from the meeting (due in two weeks) will be more interesting, as they will give information whether the balance of the board has tilted towards the hawks. Minutes from the August meeting showed a split vote of 7-2 in favour of keeping rates unchanged.
We expect the Swedish Riksbanks meeting to yield little out of the ordinary.
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