Analysts at TD Securities are expecting the Norges Bank to keep its policy rate on hold and suggest that the tone of the statement and accompanying Monetary Policy Report should remain constructive.
Key Quotes
“We expect the Executive Board to repeat its commitment to a 2019Q1 rate hike. We take the Executive Board’s forward guidance at face value, and expect the next hike to occur in March.”
“While oil prices have been volatile in recent months, underlying fundamentals in the Norwegian economy point toward relatively healthy growth dynamics.”
“We expect the Norges Bank to cautiously hike rates in March and September 2019. They are likely to take a page out of the Bank of Canada’s playbook, emphasising the impact on household balance sheets as they hike rates.”
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