MNI BRIEF: Chinese Aluminium Exporters To Renegotiate Prices

MNI BRIEF: BOJ October Real Export Index Falls 4.9% M/M

MNI: PBOC Net Injects CNY69.1 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1935 Weds; +0.09% Y/Y

CHINA PBOC CONDUCTS CNY302.1 BLN VIA 7-DAY REVERSE REPOS WEDS

CHINA SETS YUAN CENTRAL PARITY AT 7.1935 WEDS VS 7.1911

MNI: GERMANY OCT PRODUCER PRICES -1.1% Y/Y

MNI: UK OCT CPI +0.6% M/M, +2.3% Y/Y

Japan Oct Exports +3.1% Y/Y; Imports +0.4% Y/Y

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

NatWest Markets: Sees 25bps and 4 Further Hikes in 2022

NORGES BANK
  • We expect Norges Bank to raise rates by another 25bp and quicken its pace of tightening by lifting its rate path at the June policy meeting amid building inflationary pressures and tight labour market.
  • We see the updated rate path to signal 4 further rate hikes this year, making use of its 2 interim meetings. The terminal policy rate will likely be brought higher to around 3% from around 2.5% currently. Risks are on the upside and there is a good chance of a 50bp hike considering recent upside surprises in inflation data and NOK weakness. Rates markets are currently pricing about seven more 25bp rate hikes by end of ‘22. The hurdle for the central bank to be more aggressive than market pricing appears high, and NOK support should be limited if the central bank hikes 25bp as planned.
  • We expect the central bank to revise down its growth projections but revise up near term inflation forecasts.
  • There seem few signs of wage-prices spiral for now though. The central wage negotiation came in at 3.7% for the coming year, consistent with NB March projections. Local wage negotiations are ongoing, but there seem few signs that there will be a large deviation from the central level. The regional network survey shows that contacts have revised up their estimate for annual wage growth in ’22 to 3.9% from 3.7%, which is not dramatically different from central bank forecast.
Homepagemarkets-real-timeNorges Bank Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.