Norges Bank kept its key rates unchanged at 1.50% as expected. There was no new interest rate forecast this time. Norges Bank said it had not considered other alternatives.
There was no clear conclusion on whether it still sticks to the interest rate path from September or not. However it indicates that it has not changed view significantly by saying that; “Consumer price inflation in September was lower than expected, and the twelve-month rise in consumer prices may continue to be somewhat lower than previously projected in the period ahead. On the other hand, the krone is considerably weaker than assumed”.
Norges Bank gave little weight to domestic growth figures which we view as on the weak side. House prices fell last month, registered unemployment increased, and as Norges Bank mentioned, household demand has been on the weak side. We stick to our view that Norges bank will be on hold next year in contrast to Norges Bank’s forecast for one hike next summer.
Nordea