Norges as expected, on hold and notes inflation undershoot
It reserves judgement but overall slightly less hawkish
Outlook ultimately depends on global backdrop over next few quarters
No surprise as Norges Bank leaves policy on hold. It acknowledges that inflation has slowed and come in under projection which is ‘welcome’ though notes that its too early to say the outlook has changed materially and thus it may be necessary to still raise rates.
Pretty much as expected and no great move from the NOK, though at the margin may be seen as somewhat less hawkish. Ultimately, of course, the outlook and whether the market can further dilute hike odds by turn of the year will very much depend on the global backdrop and oil. The Bank still looks ahead of the curve and having potential, everything constant, to start to reverse some of its tightening next year, unless the commodity outlook sees a more significant long term shift.