As expected, Norges Bank (NB) hiked rates by 50 basis points to 1.75%. The Norwegian krone was also able to appreciate following the announcement. This is the right move, in the opinion of economists at Commerzbank.
Well done, Norges Bank
“NB raised the key interest rate by 50 bps to 1.75% due to the inflation developments and signaled a further increase in September.
“It also logically indicated that the path will most likely be raised in September. However, NB also acknowledges that the outlook is highly uncertain. On the one hand, price inflation could accelerate further, and on the other, there could be a sharper slowdown in global growth. However, all central banks ultimately face this problem.”
“My conclusion on Norges Bank: You couldn't ask for more from it at this point. Well done.”
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