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 expected to continue to flag December as most opportune next hike
- Economic developments since September have been inside Bank forecasts
- No fresh projections or rate path, leaving significant market reaction unlikely
MNI Norges Bank Preview Nov 2021.pdf
The Norges Bank became the first G10 central bank to tighten pandemic-era interest rates in September, raising the policy rate to 0.25%. The Bank also name-checked December as the next opportune meeting to hike rates, making November's meeting a likely pause while the board wait for December's fresh projections.
Economic developments since the September meeting have been comfortably inside the Bank's most recent set of expectations, keeping the bank on track to point to December as the next likely 25bps hike. This should allow the the bank to retain their confidence in the economy's upswing through the rest of 2021, with a higher domestic vaccination rate countering the rise in infection levels. In September, they acknowledged that while underlying inflation remains low, burgeoning wage pressures, imported inflation and persistently high activity will feed into an inflation rate that creeps back towards their 2% target.
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.