June 24, 2022 13:16 GMT
- 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.
- Full MNI Review here: https://marketnews.com/mni-norges-bank-review-june...