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.
MNI Norges Bank Preview - March 2021: Rate Path to Receive Shot in the Arm
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At December's Monetary Policy Report, the Bank flagged that the board would need to see "clear signs" of a normalization of economic conditions before considering changing the headline policy rate. Developments in both the economy and in public health since December have worked in favour of return to 'normality' more quickly than the Norges Bank assumed in their baseline scenario.
The market's immediate focus will be on the pricing for the first 25bps rate hike. The majority of analysts surveyed see the Bank bringing this timing forward to December 2021, six months or so after the virus containment restrictions are eased in the Bank's most bullish virus scenario. It may be the case that the board see this as too aggressive a timeline to commit to at this meeting, leaving such a revision until the June policy projections when the performance of the vaccine rollout and the virus picture is far clearer. In this case, the bank would – once again – be relying heavily on their judgement factor to supress the policy path this year.
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.