Norges Bank Preview: Forecasts from three major banks, will this hike be the last?

Norges Bank will announce a new rate decision on Thursday, January 19 at 09:00 GMT and as we get closer to the release time, here are the expectations forecast by the economists and researchers of three major banks regarding the upcoming central bank's Interest Rate Decision.

Norges Bank is expected to hike rates by 25 basis points to 3.0%. This could end the tightening cycle. At the last policy meeting on December 15, the bank hiked rates by 25 bps to 2.75%.

ING

“We expect a 25 bps rate hike, which would mean that the 3% level is reached. We see little reason not to take Norges Bank at its word and we suspect that will indeed be the peak, though much depends on oil prices and what other central banks end up doing through the spring.”

Swedbank

“Norges Bank will likely keep the policy rate unchanged at the interim policy meeting as no big deviations from the December projections are seen.”

TDS

“We now look for an unchanged policy rate at 2.75%, in line with the Bank's rate path projection. With data coming in roughly in line with the Bank's latest forecasts, we think the Bank will wait for more data before delivering another 25 bps hike in March. Strong GDP data presents some hawkish risk to our call, and might be enough to warrant a 25 bps hike at this meeting.”