Uncandid Ingves, Norges Bank to take a breather

In comparison to the excitement caused by the Riksbank’s meeting this week, the Norges Bank’s policy announcement next Thursday is likely to be a more prosaic affair. Indeed, while Governor Wolden Bache has indicated a willingness to break with tradition and potentially raise rates at “interim” policy meetings if deemed necessary, we do not think that enough has changed since the March meeting to cause the Bank to depart from its current guidance that “the policy rate will most likely be raised further in June”.