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One last hike to come at Norges Bank

Despite the recent paring back of interest rate expectations across Europe, we think Norges Bank is likely to go ahead with one final 25bp hike next week – taking the policy rate to a peak of 4.50% – though it will signal that its tightening cycle is over. Further ahead, we expect the Bank to begin cutting interest rates around the middle of next year, which is sooner than its current forecasts suggest.

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