Norges Bank still expected to hike in H2 – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj believes the Nordic central bank remains poised for a rate hike in the second half of this year.

Key Quotes

“The Regional Network Survey released yesterday added an argument for why we should expect an upward revision of the Norges Bank rate path at next week’s monetary policy meeting”.

“We note that while there was a substantial reaction in the short-end of the NOK rates market, the FX reaction was more subdued. We do, however, think it is a matter of time before EUR/NOK moves lower and partially attribute a bid EUR/SEK for why EUR/NOK had a tough time coming lower in yesterday’s session”.

“The next thing to look out for on the data calendar for the NOK is Thursday’s ECB meeting alongside Friday’s NOK inflation print and the US non-farm payrolls report”.