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    Norges Bank seen ‘on hold’ today – Danske Bank

    Senior Analyst at Danske Bank Jens Pedersen sees the Nordic central bank keeping its monetary stance unchanged at today’s meeting.Key Quotes“We expect Norges Bank (NB) to keep rates unchanged today but to keep an easing bias by indicating a rate cut during the autumn”.“However, we doubt NB can be as dovish as in March. Higher oil prices and reduced fears of serious second-round effects mean that the downside risk to the Norwegian economy has decreased”.“At the same time, housing prices and household borrowing have risen more than expected, rekindling fears of a build-up of financial imbalances”.“Also, fiscal policy is becoming much more expansionary than expected, which should boost growth in H2. We therefore reckon that the probability of a cut in September has now fallen to 80-90% and the chances of a further cut after that are reduced to 5-10 %”.

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