Norway central bank seen hiking rates by 25 basis points on Thursday - poll
Norway's central bank is expected to raise its benchmark interest rate by 25 basis points to 4.50% this week, according to a narrow majority of economists in a Reuters poll, as it continues to battle inflation. If the central bank stays on hold on Thursday at 4.25%, it will still likely raise rates later in the year, according to the survey of analysts. Annual core inflation in Norway rose to 3.0% year-on-year in August, above the central bank's target of around 2%.
50% as it continues to battle inflation, according to a narrow majority of economists in a Reuters poll. The central bank hiked rates in May in response to rising inflation but said in August that the future path of monetary policy would "depend on economic developments", casting some doubt on the way forward. 25%, it will still likely raise rates later in the year, according to the survey of analysts. 0% year-on-year in August, above the central bank's target of around 2%, official data showed earlier this month, reigniting expectations for another rate hike.
Analysts at Handelsbanken said rates were likely to rise this week but added that there was significant uncertainty. "As we see it, conditions have not changed enough overall for Norges Bank to deviate from this path now," the bank's economists wrote in a note to clients. Brokers Nordea said the next rate hike was only a matter of time, adding that this week's decision was a very close call. "We lean towards a hike, but if Norges Bank stays on hold now, we expect a move in November," Nordea wrote.
50%on Thursday, while 12 predicted no change at this time. 50% will come in the fourth quarter. 50% to be the peak borrowing cost. After its decision on Thursday, Norges Bank will make its next policy rate announcement on November 5.
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