Bank Raises Rates by 25bps to 2.50%, Signaling End to Front-Loading

Norges Bank hikes rates by 25bps to 2.50%, a smaller hike than seen by many.

Statement highlights:

• The policy rate will most likely be raised further in December.
• There are signs that some areas of the economy are cooling down, and prospects for lower-than-expected freight and energy prices may curb inflation ahead.
• The policy rate has been raised markedly over a short period, and monetary policy is beginning to have a tightening effect on the economy. This may suggest a more gradual approach to policy rate setting.
• Full statement here: https://www.norges-bank.no/en/topics/Monetary-poli...

This is dovish development and signals a return to gradualism for the Norges Bank. Likely means the end of front-loading from the board and a return to a normal clip of 25bps rate steps going forward.

• EUR/NOK spikes to new daily highs of 10.3710 before moderating slightly. Press conference starts in 30 mins