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Swedbank and Handelsbanken also look for 50bp from Norges next week

NORWAY
  • Swedbank: "While you could say that the July CPI surprise is much owing to a record high increase in food prices, the broadness in price increases are telling. Out the twelve main categories in the core measure, CPI-ATE, all but clothing & footwear posted a seasonally adjusted increase. The monthly momentum in seasonally adjusted price increases also picked up from 0.3-0.4% m/m as seen over the past months, to now stand at 0.7%, which is something Norges Bank will not like. Add that core inflation is now at the highest level ever registered, faster hikes ahead is a done deal... The combined June and July CPI inflation prints clearly speaks in favour of Norges Bank frontloading their rate hikes even faster and deliver 0.5pp hikes in both August and September."
  • Svenska Handelsbanken: "Prior to these numbers, we had clearly signaled the possibility for another double rate hike next week (contrary to Norges Bank’s guidance of 25bps). We now finally conclude that this will be the actual outcome, and we also eye the possibility for another double rate hike at the following September-meeting. Norges Bank is well behind the curve, and thus even more front-loading will continue to be the name of the game."
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  • Swedbank: "While you could say that the July CPI surprise is much owing to a record high increase in food prices, the broadness in price increases are telling. Out the twelve main categories in the core measure, CPI-ATE, all but clothing & footwear posted a seasonally adjusted increase. The monthly momentum in seasonally adjusted price increases also picked up from 0.3-0.4% m/m as seen over the past months, to now stand at 0.7%, which is something Norges Bank will not like. Add that core inflation is now at the highest level ever registered, faster hikes ahead is a done deal... The combined June and July CPI inflation prints clearly speaks in favour of Norges Bank frontloading their rate hikes even faster and deliver 0.5pp hikes in both August and September."
  • Svenska Handelsbanken: "Prior to these numbers, we had clearly signaled the possibility for another double rate hike next week (contrary to Norges Bank’s guidance of 25bps). We now finally conclude that this will be the actual outcome, and we also eye the possibility for another double rate hike at the following September-meeting. Norges Bank is well behind the curve, and thus even more front-loading will continue to be the name of the game."