Erik Johannes Bruce, Research Analyst at Nordea Markets, suggests that the Norges Bank will be on hold in its forthcoming meet and indicate that it has not changed view, which means a first hike is expected to be in Q1 2019.
Key Quotes
“Norges Bank will publish its interest rate decision on 25 October 10.00 CET. Norges Bank hiked its key rate in September and indicated a next hike in Q1 2019, thus a hike now is out of the question. The October meeting is an interim meeting and there will be neither new interest rate forecast nor any press conference.”
“With no rate path the focus will be on whether the board’s assessment indicates any change in view.”
“We see no reason for Norges Bank to change view on rates given the development since the September report. News might be in sum slightly on the strong side, but nothing which will make any major impact on Norges Bank’s view.”
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