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Rate Decision and Policy Statement Broadly Inline With Expectations

NORGES BANK
  • Policy rate will most likely be raised further in June
  • Rate path gets the expected boost, with year-end average depo rate raised to 1.32% from 1.11% in Dec. This prices year-end rates at 1.50%- Terminal rate (now end-2025) up to 2.31%, and path projects 4 rates hikes this year (inline with exp) and a further 4 hikes in 2023 (Q4 2023 path projection upped to 2.35% from 1.62% prior.
  • Broadly inline with expectations for the rate path, and leaves Norges Bank set to raise rates at each quarterly monpol report meeting. Leaves very little suggestion of either back-to-back rate rises or a 50bps moves.
  • No distinct reaction in NOK prices, with EUR/NOK just off the lows of the day and either side of the 9.50 level.

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