NOK appears strong, Norges Bank could hike rates in 2018 – Danske Bank

Piet Christiansen, Senior Analyst at Danske Bank, suggested a rate hike by the Norges Bank later in the year still remains on the cards.

Key Quotes

“Market expectations proved right yesterday as Norges Bank Governor Olsen refrained from giving any new monetary policy signals to markets in his annual address”.

“Instead he repeated the message of a likely interest rate hike this year – in line with the current rate path – and emphasized how that was a healthy sign in terms of the economy even if it could create challenges for some”.

“Olsen also emphasized that the central bank need not be that worried if it takes longer to reach the inflation target in a situation where growth is healthy and financial stability worries present”.

“Overall, the speech does not alter our positive view on the NOK and we still see NOK upside in the coming months”.