Norges Bank to keep rates on hold today - TDS

Analysts at TDS are looking for the Norges Bank to keep rates on hold today, and to raise its policy rate projections, but with most of the additional tightening to come in 2019-2020, while markets seem to be looking for the Norges Bank to pull forward its first rate hike all the way to September 2018.

Key Quotes

“We look for a dovish market reaction in the short-term as markets are more focused on the timing of the first hike than the total amount of tightening over the next couple of years. While the Norges Bank may not focus on policy divergence as much as some of its Scandinavian neighbours, we think that there are limits as to how early it can raise rates compared to the ECB in particular, especially if it wants to see the slow and gradual krona appreciation that it forecast in December.”