With NOK much weaker than expected and unemployment decreasing a rate cut is very far away. It is hard to understand why the market still prices a high probability of a cut this year.
Unemployment including those on labour market measures fell again in July and the trend is now clear. Unemployment is decreasing. Unemployment was 89 700 at the start of the year and now 87 300. This picture is in line with the one the LFS unemployment gave earlier this week. This week’s unemployment figures are on the strong side to Norges Bank’s view.
With NOK much weaker than expected and unemployment decreasing a rate cut is very far away. It is hard to understand why the market still prices a high probability of a cut this year.
Details: Registered unemployment rate was 3% up from 2.7% as expected. Seasonally adjusted unemployment decreased by 800 persons.
Nordea