Danske Bank analysts point out that the Norges Bank (NB) raised policy rates by 25bp, taking the sight deposit rate from 1.00% to 1.25%.

Key Quotes

“The rate path was adjusted marginally upwards at the short end and marginally downwards at the long end. The message is clearly hawkish, as a strong domestic business cycle suggests a further frontloading of monetary tightening despite elevated international uncertainty at present. We expect NB to hike the sight deposit rate again by another 25bp at the 19 September meeting.”