Norges Bank Rate Hike This Week Looks Most Likely Outcome

Dow Jones
Sep 23

1016 GMT - Norges Bank's rate decision on Thursday is highly uncertain, but a hike remains the most likely outcome, Handelsbanken's Norway chief economist Marius Gonsholt Hov writes. Views are divided on whether the key policy rate will be raised, but Handelsbanken leans towards an increase to 4.50%, which would be in line with the signals from Norges Bank's June report, it says. While core inflation has been lower than Norges Bank expected over the past three months, wage growth remains clearly too high. At the same time, international policy rate expectations have risen considerably, he adds. The new rate path will probably be revised slightly lower at the short end, but somewhat higher a bit further out, the bank says.

 

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