Rates Kept Unchanged, Alongside Majority of Expectations

Norges Bank keep rates unchanged at 2.75%, alongside expectations, and name check March as the next likely rate hike.

Statement highlights: https://www.norges-bank.no/en/topics/Monetary-poli...

• “The future policy rate path will depend on economic developments. The policy rate will most likely be raised in March”, says Governor Ida Wolden Bache.
• the policy rate will need to be increased somewhat further to bring inflation down towards the target
• Labour market appears to have been a little tighter than projected
• There are prospects that energy prices will be lower than expected earlier, and global inflationary pressures appear to be easing
• monetary policy has started to have a tightening effect on the economy. This may suggest a more gradual approach to policy rate setting

Language on rates has softened somewhat - possibly suggesting a March hike could be the last of the cycle:

• January: "the policy rate will need to be increased somewhat further"
• December: "a higher policy rate may be needed than currently envisaged."

EUR/NOK has edged higher in response, but price action relatively contained below the earlier intraday high at 10.7617.