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A 50bp rate hike by Norges Bank, but we notice a small dovish tilt
Norges Bank delivered another much-anticipated 50bp rate hike today, bringing the policy rate to 2.25%. The move was fully in line with the Bank’s determination to fight elevated inflation, as firmly reiterated by Governor Ida Wolden Bache in her post-meeting statement. The Bank also released its updated economic and policy rate projections. While the inflation forecast was revised higher, the rate path was nearly unchanged from the June 2022 projections, with a peak expected at 3% in 2023 and remaining around that level into 2024. Perhaps surprisingly, the Bank explicitly mentioned that “monetary policy is ... (full story)