Norges Bank to hike rates and signal more to come - ING
According to analysts at ING, the Norwegian central bank looks set to go firmly against the global rate cut tide on Thursday, where the stage is set for interest rates to increase by a quarter-point to 1.25%, marking the second rate hike so far in 2019.
“But given that this move was clearly signposted by policymakers back at the May meeting, the bigger question is whether the bank will signal a third increase later in the year.”
“Domestically, the case for tightening continues to look fairly solid.”
“The combination of stronger near-term investment and the weaker krone should have the effect of boosting Norges Bank’s rate path in the short-term.”
“Wrapping all of this together, it looks pretty likely that the Bank will incorporate a further rate hike later this year into its projections. We think such a move is most likely to happen in December.”
“All this could support NOK in the short term and even deliver a lower USD/NOK.”
This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.