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JP Morgan and DNB also look for 50bp Norges Bank hikes next week

NORWAY
  • JP Morgan: "Headline inflation increased from 6.3% to 6.8%oya, the highest number since July 1988. If not for the government’s electricity package, CPI would have been 8.9%oya. As core inflation and domestic inflation were well-above Norges Bank’s forecast, we think Norges Bank will hike by 50bp again in August... Historically, Norges Bank has had a strong forward guidance, but the decision to hike by 50bp in June has opened the door for delivering more surprises in the future. We therefore now expect Norges Bank to hike by 50bp in August and hike at every single meeting in 2022. We still see a terminal rate of 2.75%."
  • DNB: "The inflation is broadly based and seems to be stronger than Norges Bank anticipated. We now expect Norges Bank to hike the policy rate by 50bp at each of the meetings in August and September."

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