Analysts at TD Securities note that the Norges Bank, in its monetary policy meeting today has kept its policy rate and guidance unchanged as expected, with the Bank reiterating that the “policy rate would most likely be raised in March 2019,” solidifying March rate hike expectations.
Key Quotes
“Beyond that, the rate outlook was “little changed” for the Bank, while the statement struck a balanced tone – noting weaker than expected global growth and considerable uncertainty, but at the same time still solid domestic growth and labor market conditions and better than expected inflation.”
“Language around a cautious approach was also dropped, though we don’t draw much significance to that. Moreover, domestic conditions should keep the Norges’ tightening bias in place, but the pace of tightening will still be gradual. We expect a March hike, with the next hike in Q3.”
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