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:
- Main Policy Rate raised by 25bps to 0.50%, alongside MNI expectations
- Bank surprisingly name-checked March as when the key rate will likely next be raised
- Wages, waning infection rates expected to contribute to higher underlying inflation ahead
Full review here:
The Norges Bank shrugged off concerns surrounding the omicron variant, hiking rates by 25bps to 0.50% and name-checking March as the next most likely meeting at which rates will next be raised. This worked against a market that had seen a decent chance of the board holding policy unchanged – with the fast-spreading omicron variant prompting the biggest wave of COVID infections of the pandemic so far. As such, the NOK rallied and the local rates market bear-flattened as traders re-priced higher near-term rates.
By tightening policy and raising the terminal rate of the path projections, the bank have now solidly indicated that wage and price pressures are expected to remain elevated in the near-term, and counter any risks from new variants, activity restrictions or vaccine effectiveness.
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.