MNI BRIEF: Norges Bank On Hold, Next Hike Likely June

Norges Bank left its policy rate on hold at 0.75% at its May meeting and reaffirmed that its next hike was likely in June, while warning that it could accelerate the pace of tightening if upside inflation risks materialise.

In its commentary Norges Bank cited a string of upside inflation pressures, including higher inflation expectations, the war in Ukraine and China's zero Covid policy which may aggravate supply chain disruptions. The May meeting was an interim one with no new forecasts and Norge Bank has, so far, stuck to a pace of one 25 bps hike alongside each quarterly forecast round.