After unexpectedly low inflation in March, and a persistent downward trend in core inflation, price growth surprised on the upside in April, making us believe an interest rate cut is no longer on the agenda for Norges Bank. However, data suggest a lower path, and we expect the first rate hike to be pushed to Q4 next year.
- GDP Mainland +0.7% and GDP total -0.2% in Q1
- Private consumption, oil investments and net exports pull up, other investments pull down
- Broadly in line with Norges Bank