Norges Bank set to hike, Fed set to cut in the week ahead – Danske Bank


Amongst the market movers in the week ahead, analysts at Danske Bank are expecting the Norges Bank to hike its policy rate by 25bp to 1.50% on Thursday and believe that the rate path will be flattened.

Key Quotes

“We expect the new rate path to suggest unchanged rates after Thursday but believe that a hike is more likely than a cut.”

“In Sweden, we expect the Riksbank minutes to show that there has been significant disagreement within the Executive Board.”

“On Wednesday, we expect the Fed to cut by 25bp without pre-committing to more cuts.”

“We do not expect either the Bank of Japan or the Bank of England to change its monetary policy stance next week.”

“Watch out for low-level trade talks between the US and China ahead of the formal meeting in early October.”

“On Tuesday, the UK Supreme Court hearing on whether Prime Minister Boris Johnson's prorogation of Parliament was unlawful begins (it is not clear whether the ruling will also be on Tuesday). In our view, the ruling will not be a game changer for Brexit.”

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