Fast Comment Norway

Fast Comment Norway — Norges Bank on hold as widely expected

  1. Key policy rate unchanged at 1.5 percent
  2. No new signals about the interest rate path ahead
  3. We maintain our forecast that the first interest rate hike will come in March 2013

Ida Wolden Bache, Economist | idba01@handelsbanken.se

Fast Comment Norway — Core inflation lower than expected at 0.7% y-o-y in April

  1. Core inflation lower than expected at 0.7% y-o-y in April
  2. Price growth in line with Norges Bank
  3. Key policy rate on hold today at 1.5%

Kari Due-Andresen, Economist | kadu01@handelsbanken.se

Fast Comment Norway — Manufacturing down in March, contradicting surveys

  1. Manufacturing production down by 0.5% in March as duality increases
  2. The contraction contradicts surveys
  3. Does not change Norges Bank's strategy

Kari Due-Andresen, Economist | kadu01@handelsbanken.se

Fast Comment Norway — Norges Bank regional network sees stronger growth than expected

  1. Stronger increase in output growth and better market prospects than expected
  2. Higher capacity utilisation than in the Q1 report
  3. Update adds to upside risks to Norges Bank's interest rate path

Kari Due-Andresen, Economist | kadu01@handelsbanken.se

Fast Comment Norway — Employment continues to increase healthily

  1. LFS unemployment at 3.2% in Feb as expected
  2. Employment increases faster than labour force
  3. Strong labour market may produce higher wage growth than Norges Bank expects

Kari Due-Andresen, Economist | kadu01@handelsbanken.se

Fast Comment Norway — Manufacturing PMI corrects down in April

  1. Manufacturing PMI comes in at 53.7 in April, down from 59.3 in March
  2. Downward correction larger than expected, new orders and employment indices drop
  3. PMI now more consistent with our view of modest growth in manufacturing ahead

Ida Wolden Bache, Economist | idba01@handelsbanken.se