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MNI BRIEF: Norges Bank Hikes 25bps; Sees Policy Rate 1.7% 2024

MNI BRIEF: Norges Bank On Hold; Reaffirms Sep  Hike
MNI BRIEF: Norges Bank On Hold; Reaffirms Sep  Hike
(MNI) London
(MNI) Oslo

The Norges Bank has again led the way on the tightening path by hiking its policy rate for the second time, raising it by 25 basis points to 0.5% and projecting gradual increases to take it to 1.7% by the end of its forecast period in 2024. The onset of the new Covid variant, Omicron, had no impact on the rate projection which was little changed from September's path.

The policy rate projection for 2022 was nudged down 0.1 percentage point to 0.8% while the 2023 forecast was nudged up 0.1 points to 1.5%. Governor Oystein Olsen said that while there was considerable uncertainty around the pandemic "if economic developments evolve broadly in line with projections the policy rate will most likely be raised in March," as noted in the latest MNI State of Play.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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