MNI Norges Bank Review - Dec 25: Not In A Rush

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EXECUTIVE SUMMARY: 

• Norges Bank held the policy rate at 4.00% as unanimously expected, and continued to guide that “the outlook is uncertain, but if the economy evolves broadly as currently projected, the policy rate will be reduced further in the course of the coming year”
• The policy statement re-iterated that Norges Bank is “not in a hurry to reduce the policy rate”, with restrictive policy still needed to bring inflation back towards the target.
• The December MPR rate path saw a smaller downward revision than had been expected by analysts, prompting a modest hawkish reaction in NOK markets
• The revised rate path was consistent with 1-2 rate cuts next year, according to Governor Wolden Bache.