Joachim Bernhardsen, Strategist at Nordea Markets, notes that the Norges Bank left the key rate unchanged at 0.5% at today’s monetary policy meeting, but in a hawkish move, it confirmed that they still are on track to lift rates in September. Key Quotes “A September hike is fully discounted in the rate path. According to the path the next hike will follow in March 2019 and September 2019. The path is slightly higher than the one in March.” “The main message in the MPR was much as we expected. Lower than expected inflation argues for a lower path and so do rates and growth abroad. Higher oil prices, stronger domestic demand and NOK remaining weak given the rise in oil price is the main reason why the path is still slightly higher than in March.” “We think news going forward should be significantly on the downside to prevent Norges Bank from hiking in September.” “According to our inflation forecast Norges Bank could be surprised on the upside.” “Norges Bank’s view of a stronger NOK means that we can still see a quite significant NOK strengthening before the NOK being a constraint on monetary policy. In terms of EURNOK Norges Bank’s forecast can be trasferred into 9,20 in Q4, not too far from our forecast of EURNOK at 9,25 in three months.” “To conclude; we were assured in our forecast Norges Bank will hike in September and then we should expect a gradual rise in rates the coming years.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD potential test of 1.1500 on the cards, Italy weighs FX Street 3 years Joachim Bernhardsen, Strategist at Nordea Markets, notes that the Norges Bank left the key rate unchanged at 0.5% at today's monetary policy meeting, but in a hawkish move, it confirmed that they still are on track to lift rates in September. Key Quotes "A September hike is fully discounted in the rate path. According to the path the next hike will follow in March 2019 and September 2019. The path is slightly higher than the one in March." "The main message in the MPR was much as we expected. Lower than expected inflation argues for a lower path and so… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
