James Smith, developed markets economist at ING, points out that Norges Bank has taken its tightening cycle a step further on Thursday by increasing interest rates a quarter point to 1.25% which is in stark contrast to many of its developed markets peers.

“Given this move was clearly flagged back in May, the bigger focus is the Norwegian central bank’s new interest rate projection – and as expected it’s a tale of two halves. Probably the biggest news is that the central bank thinks it will “most likely” hike again over the course of 2019, having previously seen the next move around the first quarter of 2020. That follows a better-than-expected reading from the latest oil investment survey for 2019 spending. We expect the central bank to hike rates again December, although as ever a lot will depend on how trade tensions evolve over coming months.”