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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:
- The Norges Bank will likely lean further on September as a probable timeline for the first rate hike at this week's set of projections, with December's meeting to become nailed-on for higher interest rates.
- Solid underlying economic activity, bubbling financial stability risks and an adherence to the Norges Bank's inflation mandate are all clear drivers for the board to signal more strongly that tighter policy is forthcoming.
- Bank expected to look through recent misses on inflation, with focus on the medium-term outlook
The Norges Bank will likely lean further on September as a probable timeline for the first rate hike at this week's set of projections, with December's meeting to become nailed-on for higher interest rates. Solid underlying economic activity, bubbling financial stability risks and an adherence to the Norges Bank's inflation mandate are all clear drivers for the board to signal more strongly that tighter policy is forthcoming.
In previous statements, the Bank have made it clear that higher rates will come when there are "clear signs of economic normalization" in Norway. These signs have become considerably clearer over the past few months, prompting markets to expect the Norges Bank to lean less on the judgement factor when formulating their rate projections. This should be most evident in the front-end of the curve, allowing for an earlier rate lift-off and a terminal rate that creeps higher from its current 1.23%.
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.