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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 raised rates by 25bps, and notched rate path projections materially higher
- Statement name checked the May meeting as the next likely hike
- Policy report leaned hawkish, with projections seeing higher rates for the duration, and smaller chance of post-peak easing cycle
Full review including sell-side views here:
Inline with forward guidance and market expectations, the Norges Bank raised rates by 25bps to 3.00% and signalled further tightening is likely to follow at the May meeting. Reinforcing the tightening bias was the material upgrade to rate path projections, which now fully discount two further 25bps hikes and a strong possibility for a third before year-end.
The Bank’s decision to earmark May as the next likely rate hike breaks the assumed pattern evident at the beginning of the year, at which markets looked for quarterly hikes aligned with the Bank’s quarterly Monetary Policy Report releases. As such, it appears the bank judged the current pace of underlying inflation as sufficient to put their return to gradualism on pause, signalling a faster pace of tightening to steer inflation back to target.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
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.
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