Research Euroland
0
0
Norway: Higher inflation leaves Norges Bank with few choices other than hiking rates
Wed, May 14 2008, 14:29 GMT
by Arne Lohmann Rasmussen
• We have revised our Norwegian inflation forecast higher by 0.2 0.3 percentage points. We now expect core inflation to run at 2.8% in the autumn.
• Our inflation forecast is now approximately 0.5 percentage points higher than the current forecast by Norges Bank. Hence, we now expect Norges Bank to flag a new rate hike in June when the new monetary policy report is released and subsequently hike rates by 25bp to 5.75% in August.
• Given our new rate forecast, we still see upside for NOK rates going forward. Hence, we reiterate our long-held strategies to buy DEC08 NOK 3M FRAs either outright or in a spread against EURIBOR. We also continue to expect a flatter curve 10y2y both outright and in a box against Euroland or Sweden.
• NOK is expected to benefit slightly from a new rate hike from Norges Bank. However, do not expect a big move as the market is already heavily positioned for a stronger NOK.
Published on Wed, May 14 2008, 14:33 GMT
Archive
- Denmark: Equity losses dampen consumption
Published On Tue, Nov 11 2008, 16:17 GMT - Euroland: Public finances shattered by crisis
Published On Wed, Nov 5 2008, 09:59 GMT - Denmark: Biggest drop in inflation since 1990
Published On Thu, Oct 30 2008, 14:18 GMT - Russia: The party is over
Published On Mon, Oct 27 2008, 13:56 GMT - CEE: Fighting an uphill battle
Published On Thu, Oct 23 2008, 16:36 GMT
Danske Bank
| Holmens Kanal 2-12, DK-1092 Copenhagen
http://www.danskebank.com/ | danskeresearch@danskebank.com
Legal disclaimer and risk disclosure
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.Interested in forex trading? forex brokerage firms!
  Contact the broker/FDM Open a demo account  |  Contact the broker/FDM Open a demo account |  Contact the broker/FDM Open a demo account |  Contact the broker/FDM |  Contact the broker/FDM Open a demo account |
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.