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Free AccessSvenska Handelsbanken: Bank to Reiterate Plans for Another Rate Hike in June
- We strongly believe that Norges Bank will reiterate its call that the next hike is likely to come in June. Note that at these interim meetings (unless dramatic events have unfolded) Norges Bank tends to balance its public statements so that they are fairly in line with the message from the previous Monetary Policy Report. We believe that this is also likely to be the case this week.
- We see a range of factors that suggest that risks are skewed to the upside in terms of Norges Bank’s further rate plans; at least at the front-end of the curve.
- In sum, we believe the factors that are pointing towards upside risks to the rate path, are outweighing the downsides. Having said that, there are probably some limits to how much further upwards Norges Bank may push the longer-end of the rate path. Thus, net upside risks to the rate path could instead materialise in terms of further front-loading, and not a parallel upward shift across the entire rate path.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.