Hikes Rates by 25bps to 4.00%, as Expected

Norges Bank hike rates by 25bps to 4.00%, as expected and name check the September meeting as the next likely rate hike.

Statement here: https://www.norges-bank.no/en/news-events/news-pub...

Highlights:

• Consumer price inflation has edged down but remains high and markedly above the target.
• Underlying inflation has remained elevated.
• If the economy evolves as currently anticipated, the policy rate will be raised further in September
• If the krone proves to be weaker than previously projected or pressures in the economy persist, a higher policy rate than signalled in June may be needed to bring down inflation.

Another open door to a further 25bps hike in September (at which we get fresh policy path projections), but all-in-all generally inline with expectations for Norges Bank. EUR/NOK edges slightly lower on release - touching day's lows of 11.5094 - but no major move in the currency.