Erik Johannes Bruce, analyst at Nordea Markets, points out that Norway’s registered unemployment fell seasonal adjusted by 600 persons in June, well in line with their expectations.
Key Quotes
“The downward trend in unemployment is still in place but it has slowed lately. We believe unemployment can fall further but given the rather low level it will be harder to cover the strong growth in demand for labour by lower unemployment. Labour shortage will be an increasing problem looking ahead one reason why wage growth is rising and one reason why Norges Bank will hike further.”
“Today’s figure was on the margin on the strong side to Norges Bank, but not enough to have any impact on its view. Norges Bank will most likely hike in September as signaled. Given no significant deterioration of the international picture/risk sentiment during the summer Norges Bank will signal the September hike at the August meeting.”
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