Norges Bank Preview: Forecasts from five major banks, last hike in December?
|Norges Bank will announce a new rate decision on Thursday, December 15 at 09:00 GMT and as we get closer to the release time, here are the expectations forecast by the economists and researchers of five major banks regarding the upcoming central bank's Interest Rate Decision.
NB is expected to hike rates by 25 basis points to 2.75%. At the last meeting on November 3, the bank hiked rates by 25 bps.
Nordea
“We still expect a 25 bps hike but have become less convinced that the key rate will need to be raised much further. Hence, the December hike to 2.75% could end up being the last hike from Norges Bank in this cycle.”
MUFG
“We expect another 25 bps hike with the potential for Norges bank to follow the BoC’s lead from last week and hint that they may be in a position to pause.”
TDS
“Another weak Regional Networks survey and softer headline and core inflation likely erased most of the risk of a 50 bps hike at Norges Bank's Dec meeting. That said, inflation is still running much hotter than the Bank's forecast (CPI: 1.1ppts, CPI-ATE: 0.7ppts) and GDP data has consistently been surprising to the upside. Therefore, we wouldn't entirely rule out a 50 bps move.”
Swedbank
“We expect a 25 bps hike in December, followed by a signal that the policy rate may be increased further in Q1 if needed, meaning the terminal rate will probably peak at somewhat below 3.00%. We expect Norges Bank to start cutting rates during second half of next year, but it is too early for the Bank to signal that already now.”
Danske Bank
“We expect 25 bps from Norges Bank.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.