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Slower CPI-ATE Lessens Pressure on Next Week's Rate Path Projections

NORWAY
  • NOK softens slightly on the back of the CPI release - the key release here is the CPI-ATE (underlying) Y/Y coming in below expectations and a slower rate of growth vs. October.
  • This feeds into the Norges Bank's views that previous tightening steps and slowing domestic demand will drive disinflation next year and could feed into next week's rate path projections. Norges Bank still expected to raise rates a further 25bps next Thursday to 2.75%.
  • Next topside level for EURNOK at 10.5663 - a break here would mark highest level since late October.

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