Riksbank unlikely to extend asset purchases past December

Minutes of the Sweden central bank's rate-setting meeting held in September which were released earlier today showed that the executive board unanimously voted to hold the repo rate at -0.50 percent and to continue to purchase government bonds in the second half of 2016 in line with the decision in April.

Members consider it appropriate to raise the repo rate slowly during the second half of 2017. At least half of the Swedish central bank's rate-setters now believed there was no need to extend asset purchases past December, the minutes revealed.

"There was limited scope for the Riksbank to pursue a "substantially" different policy from that of the European Central Bank, given the potential for the krone to appreciate strongly were that to happen," said Capital Economics’ economist Stephen Brown.

The Krona fell to nearly 3-week low of 9.5935 against the euro after the Riksbank minutes. But later pared losses, and was up at 9.5731 at around 12:30 GMT.