Norges Bank unlikely to tighten anytime soon

While core inflation in Norway rose even further above the Norges Bank’s target in August, things will soon look very different as the inflationary impact of previous falls in the krone fades and goes into reverse. Accordingly, we think that some analysts have got ahead of themselves in expecting an imminent rate hike. The main data release next week will be August labour market data from Sweden, which we expect to show that the unemployment rate edged lower.