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 meet market expectations, with 50bps hike
- Further rate hike flagged for November, but progress expected to slow from there
- Consensus building around 3.00% peak policy rate later this year
The Norges Bank raised rates by 50bps for the third consecutive meeting in September, bringing rates to 2.25%, the highest level since 2011 and into what the Norges Bank consider to be restrictive territory. The bank cited inflation being persistently higher than forecast, and flagged further rate rises are likely in November. From there, however, the pace of rates hikes should slow, with path projections pointing to a peak of 3.11% in Q3 2023.
The bank steepened the front-end of the path projections further, accommodating the larger-than-expected pace of tightening since the June policy report. Notably, the forecasts showed the pace of easing following the pivot point picking up, resulting in a lower terminal rate and easier policy through 2024 and 2025.
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.