Norges Bank to hike in September and twice in 2019 – Danske Bank

Kristoffer Lomholt, Senior Analyst at Danske Bank, expects the Nordic central bank to raise rates in September, while two rate hikes should be on the cards in 2019.

Key Quotes

“In line with Bloomberg consensus, we expect no policy rate changes from Norges Bank at the 21 June monetary policy meeting. Lower global rates and lower-than-expected inflation will lead to a negative revision to the rate path as these factors more than counter the positive impact from higher oil prices and a weak NOK”.

“Meanwhile, we think Norges Bank will stick to its signal of a September rate hike as its ‘judgement factor’ could be used as a positive contributive factor for the path amid high household debt levels and a stronger-than-expected rebound in house prices”.

“We expect Norges Bank to hike rates in September this year as well as in March and September 2019”.