According to Erik Johannes Bruce, analyst at Nordea Markets, Norges Bank didn't get quite through with its message at the last meeting and it meant to say was that June’s rate path still holds for the period ahead which implies that we should still expect a hike at the September meeting — in line with the June rate path — given no major change to the overall outlook.

Key Quotes

“Norges Bank moreover said that; “the global risk outlook entails greater uncertainty about policy rates going forward”. This sentence was not put in place with the intent to create uncertainty about the September hike. Norges Bank intended to communicate that there is more uncertain about additional hikes after the September meeting (going forward).”

“Governor Olsen use the word further ahead instead of going forward in a video explaining their decision making it clearer that the uncertainty affect its view on rates after September (sorry only on the webpage in Norwegian).”

“Still, we read lots of comments which interpret this as the end of the tightening cycle for now. Moreover, the market is pricing only in an 8bp higher benchmark rate (4-5bp for the September meeting). We believe this is either based on a misunderstanding of Norges Bank´s communication, or an assumption that new information in the coming month will be so weak that Norges Bank will change view.”

“The global risk picture has forced Norges Bank to move slower with the tightening cycle than it otherwise would. However, domestic factors have driven Norges Bank to continue tightening even in the presence of greater global uncertainty. We still expect this to be the case looking ahead. Therefore, we advise to keep your focus on domestic figures if you want to know when the tightening cycle will end.”

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD drops towards 7000 amid resurgent USD demand

AUD/USD drops towards 7000 amid resurgent USD demand

AUD/USD is easing back towards 0.7000,  fading the rebound led by China's central bank LPR rate cut. A US dollar rebound, despite improving mood, weighs heavily on the aussie. The pair ignores the uptick in the S&P 500 futures. 

AUD/USD News

EUR/USD skids to near 1.0550 as risk-on impulse fades, Eurozone data eyed

EUR/USD skids to near 1.0550 as risk-on impulse fades, Eurozone data eyed

The EUR/USD pair has witnessed a minor fall after breaching the early Asian session’s consolidation formed in a narrow range of 1.0579-1.0588 as the risk-off impulse rebounded. The asset has slipped to near 1.0550 and is expected to remain uncertain.

EUR/USD News

Gold bulls recapture 200-DMA, more gains likely? Premium

Gold bulls recapture 200-DMA, more gains likely?

Gold Price is headed for the first weekly gain in five weeks this Friday, despite posting small losses, in the wake of a sharp rebound in the US dollar. The dollar recovers its ground even though risk sentiment remains in a fairly better spot, with the S&P 500 futures up 0.65% on the day. 

Gold News

How to trade the next 20% upswing in Binance Coin price

How to trade the next 20% upswing in Binance Coin price

Binance Coin price is on a recovery rally and shows promise of a further uptrend. Adding credence to this run-up is the price inefficiency that is likely to propel BNB higher. Binance Coin price crashed to $205 on May 13 as the crypto markets crumbled due to the LUNA-UST debacle.

Read more

Tesla regains $700 despite cut from S&P 500 ESG Index

Tesla regains $700 despite cut from S&P 500 ESG Index

Tesla's stock slips as it is kicked out of the S&P 500 ESG index. Elon Musk reacts aggressively, calling it a scam. Growth fears dominated and weighed on the overall market mood, leading to a negative close on major Wall Street indices. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures