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Sell-Side See Norway CPI as Supportive for Further Hikes

NORWAY
  • Following today's CPI, Swedbank write that their peak rate baseline remains 3.75%, but risks are to the upside if the momentum in inflation continues to hold up into the autumn.
  • SEB see clear upside risks to the NB inflation forecasts, expecting core CPI to remain near 6% for the remainder of 2023, supporting the case for further rate hikes.
  • DNB believe CPI supports June rate hike guidance and also a higher rate path ahead. They see rates at 4.00% in September, with today's CPI supporting this view.
  • Nordea see CPI supporting their view of NB raising rates to 4.00% in September, and sees peak core CPI still ahead. They see rate cuts unlikely until end-2024.

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