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MNI BRIEF: Norges Bank Hikes 25bps, Envisages One More Hike

(MNI) London

The Norges Bank hiked its benchmark policy rate by 25 basis points to 2.75% Thursday and indicated that it expected one more 25 bps hike, which will likely come in the first quarter of next year.

"If the economy evolves as anticipated, the policy rate will be around 3 percent next year," Governor Ida Wolden Bache said.

There are two policy meetings in the first quarter of 2023, in January and March, and one more 25 bps hike would entail that Norges Bank, which moved ahead of other advanced economy central banks in starting its tightening cycle, could also be one of the first to hit peak. The Monetary Policy Report found evidence of more widespread slowing in the economy, as the downturn spreads, but also showed inflation persisting above the 2.0% target, with the CPI-ATE measure at 5.2% in 2023, 3.6% in 2024 and 2.7% in 2025 with the policy rate at 3.0% in 2023 and dipping to 2.9% in 2024.

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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