Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Executive Summary:
- Bank are on track for another 25bps rate hike in December, putting the deposit rate at 2.75%
- Governor may acknowledge bank are nearing end-of-cycle
- Market well priced for 25bps move, with focus on potential rate cut timing
Full Preview including summary of sell-side analyst views here:
The step-down in the size of hikes for November marked a shift in the board’s approach to policy, with the balance of risks surrounding growth now being prioritised over the still higher-than-expected rate of core inflation. In November’s press conference and policy statement, the bank flagged declining energy prices, spiralling consumer confidence and a weaker housing market as key factors in their decision. These three indicators have all deteriorated over the past quarter, leaving an assumed December hike one of the likely final tightening steps of the cycle.
Norway’s economic outlook has deteriorated since the November decision, with the much-watched RNS outlook survey falling short of expectations and signalling elevated uncertainty and a likely slowdown headed into 2023. Nonetheless, the very low unemployment rate and a CPI-ATE measures well ahead of Norges Bank’s September forecast will keep concern among the board for the next wage-setting cycle in the coming quarter.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.