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:
- Norges Bank took markets by surprise and lifted rates by 50bps
- Path projections prompt sell-side to sharply revise rate expectations
- Governor makes clear in MNI interview that 50bps rate rises not the new normal
The Norges Bank took markets by surprise in June, by both raising rates by a more sizeable margin and by accelerating the pace of hikes as policy marches toward neutral. The 50bps hike was against median market consensus, but all analysts recognised a real risk of such a hike in the face of accelerating inflationary pressures and higher rates overseas.
Despite the rate rise of 50bps, the board stressed that tightening of such size would not become a new normal – and future hike increments would return to 25bps steps. This was clear in not only the rate path projections (which point to a further 4 25bps rate hikes this year), but also in an exclusive MNI interview with Governor Ida Wolden Bache following the rate decision.
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.