Norges Bank meets to set policy - TDS

Research Team at TDS, suggests that the unpredictable Norges Bank meets to set policy one day after the government announced more expansionary fiscal policy.

Key Quotes

“While we expect a rate cut in 16Q2 to bring the key policy rate to 0.25%, odds are skewed towards this happening at the June meeting instead of May. The Norges Bank last met in March, and while the move up in oil prices since then might give them reason to pause this week, we think they’ll ultimately need to ease again in June (and again in 16H2).

Markets expect no rate change as well. GDP is also out for 16Q1, and we expect the mainland GDP figure to come in at 0.1% q/q, the same as in 15Q4 (consensus: 0.2%).”