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:
- The Norges Bank kept rates unchanged, alongside expectations, at 0%
- Bank points toward September for the first post-pandemic rate hike
- As many as four further hikes seen into end-2022, cementing Norges Bank's status as the most hawkish DM central bank
September fully priced, will December follow?
The Norges Bank cemented its status as the most hawkish central bank in G10 this week, with the board namechecking September as the most probable timeline for the first post-pandemic rate hike. The accompanying policy statement makes clear that the conditions needed for a return to "economic normalization" are fast approaching, and as such, higher policy rates are needed across the forecast horizon.
June 2021 rate path shows a sooner and steeper rate liftoff
To reflect the confidence in the post-pandemic recovery, the rate path projections show a far sooner, and far steeper rate liftoff, with a 25bps hike in September effectively fully priced as well as a decent chance of a further rise in December.
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.