In view of analysts at ING, the Norges Bank looks set to take a breather having hiked interest rates three times so far in 2019 and the question now is whether it looks to resume its tightening cycle again in 2020.
Key Quotes
“At this stage, Norway’s central bank is likely to continue signalling a prolonged pause. While higher oil prices, a weaker krone and higher global interest rates all point to an upshift in its rate path, this will be tempered by more lacklustre activity data over recent weeks. In particular, the central bank’s own regional network points to a moderation in output, particularly in the retail sector.”
“That suggests any upward shift in its interest rate projection should be fairly modest, and policymakers are unlikely to fully pencil in further rate hikes at this stage.”
“However, we wouldn’t totally rule out one further rate rise in 2020.”
“For the time being, 2020 looks set to be a more relaxed year in terms of Norges Bank policy actions.”
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