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Barclays: Looks for 50bps and a Higher Rate Path

NORGES BANK
  • Calls for a 50bp hike at the June meeting with Norges revising up the entire rate path.
  • We expect growth forecast to be revised down slightly, with a sizable upward revision in its inflation forecast. Markets are not pricing Norges as aggressively as for other central banks. We think there is room for NOK to recover from its current depressed level, but the currency still faces headwinds from deteriorating global risk sentiment.

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