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CPI Leaves Little Mark on NOK, With Focus Turning to Next Week's NB Decision

NORWAY
  • NOK pretty much unchanged on that inflation read ahead of next week's Norges Bank rate decision - market clearly taking the view that lower-than-exp headline is countered by stronger core metrics.
  • Bank signalled in Dec that the key rate would likely be raised further in Q1 (there's another meeting in March, with projections), which most sell-side banks see as being the final hike of the cycle.
  • Some sell-side names still see a further 25bps next week, and more in March - but a number of notable names see the bank as already having reached the terminal rate with December's hike.

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