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Nordea Conviction for 50bps Further Tightening Grows Post-Inflation Release

NORWAY
  • Following this morning's higher-than-expected Norwegian inflation print, Nordea write that their conviction for a peak rate of 3.25% has only strengthened and the risk is to the upside.
  • They add that the rise in prices was very broad, which should be a particular concern, and higher core inflation will not be the only positive factor when it comes to the March rate path projection.
  • Lower unemployment, softer NOK, higher wage growth and steadier house prices all mean the risk has moved to pointing to the need for even higher rates.

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