Analysts at Danske Bank point out that the Norges Bank (NB) left the sight deposit rate unchanged at 0.75%, in a decision widely expected by both markets and analysts.
Key Quotes
“This was a ‘small’ meeting, including only a press release and the one-page ‘Executive Board’s assessment’, i.e. there was no monetary policy report, no revised rate path and no press conference. This, alongside the central bank having only one month’s worth of data and economic developments to digest, limited how big a change in the policy outlook the central bank could signal.”
“NB clearly clarified that markets should expect a rate hike in March. Our call remains for two rate hikes in 2019 (March and September) but, notably, we see the balance of risk skewed towards three and not one rate hike. We also pencil in two rate hikes for 2020 and 2021.”
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