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MNI Norges Bank Review - Aug 2021: Sept Hike Nailed On

MNI Norges Bank Review - May 2021: H2 Hike on Track

Executive Summary:

  • Main Policy Rate unchanged at 0.00%, alongside expectations
  • Bank retains key messaging around September meeting as most likely for liftoff
  • Market focus turns to whether a December hike follows first move in September
Full piece here:

MNI Norges Bank Review Aug 2021.pdf

The Norges Bank doubled down on September as the most likely meeting at which the Bank will begin their post-pandemic tightening cycle. The Bank surprised no one by keeping policy unchanged, and reiterated that inflation, growth and pandemic developments have been within their range of expectations. This further signals that 'economic normalization' is fast approaching and, as such, higher policy rates are needed across the forecast horizon.

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