Norway’s inflation surprised sharply to the upside in July. Thus, in the view of analysts at TD Securities another 50 bps Norges Bank hike is now likely.

Norway inflation surges

“Inflation came in much stronger than expected in July, with the headline rate rising to 6.8% YoY and underlying inflation soaring to a new series high of 4.5% YoY. This puts headline and core inflation 1.7ppts and 1.3ppts above Norges Bank's latest forecasts.”

“We now expect Norges Bank to raise its policy rate by 50 bps for the second consecutive meeting next week.”

See – EUR/NOK to tick down on indications of Norges Bank hiking rates again notably – Commerzbank