On Thursday it was reported that prices in Norway have risen by 7.5% over the past twelve months. The data also showed that core inflation closed at 5.9 percent year-on-year in October, up from 5.3 percent in September.
It was higher than Norges Bank’s estimate, which raises the likelihood of another large interest rate hike by Norges Bank in December, or 0.50 percentage points, DNB writes in its Friday morning report.
– That said, there are several arguments that Norges Bank will only increase by 0.25 percentage points and that the peak of interest rates will soon be close, writes DNB. Their forecast is that the peak of interest rates will be 3.25%.
On Thursday, Nordea wrote that Thursday’s inflation data could point in the direction of faster hikes in interest rates and a spike in higher interest rates, viewed in isolation. They believe Norges Bank will raise rates by 0.25 percentage points in December, but say the uncertainty has increased considerably.
