VIEW: ING: Norges Bank Opts To Front-Load Rate Hikes As Inflation Climbs

ING note that “policymakers faced a choice between sticking to their previous guidance, or changing course and acting more forcefully on the basis of the latest data - a similar conundrum that the ECB faced a few weeks ago. In practice, officials have concluded that front-loading hikes in this environment makes more sense.”

• “At the June meeting, Norges Bank projected 25bp rate hikes at every forthcoming meeting through to mid-2023, with a terminal rate of roughly 3%. We shouldn’t necessarily infer from today’s decision that Norges Bank will go materially above that, but it does look like 3% will be reached more quickly. We now expect further 50bp rate hikes in September and probably also November, with another one or two 25bp hikes thereafter.”