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Erik Johannes Bruce, analyst at Nordea Markets, notes that the Norges Bank kept rates unchanged as expected and as in line with the March rate path.

Key Quotes

“More important by saying that the: “current assessment of the outlook and balance of risks suggests that the policy rate will most likely be raised in June.” it clearly indicates that it will hike in June.”

“The March path gave a June hike more than 50% probability, but not 100% so this is clearly on the hawkish side. We believe in a June hike.”

“If NOK and oil prices remains close to the current level it argues for a significant rise in the rate path and the development in the economy should disappoint strongly to prevent a hike in June.”