NORWAY: JP Morgan and DNB also look for 50bp Norges Bank hikes next week
Aug-10 08:53
JP Morgan: "Headline inflation increased from 6.3% to 6.8%oya, the
highest number since July 1988. If not for the government’s electricity
package, CPI would have been 8.9%oya.
As core inflation and domestic inflation were well-above
Norges Bank’s forecast, we think Norges Bank will hike by 50bp again in August... Historically, Norges
Bank has had a strong forward guidance, but the decision to hike by 50bp in
June has opened the door for delivering more surprises in the future. We
therefore now expect Norges Bank to hike by 50bp in August and hike at every
single meeting in 2022. We still see a terminal rate of 2.75%."
DNB: "The inflation is broadly based and seems to be
stronger than Norges Bank anticipated. We now expect Norges
Bank to hike the policy rate by 50bp at
each of the meetings in August and September."