Norway 360 Weekly Market Review

The report highlights sticky 3% inflation in Norway leading to a hawkish Norges Bank stance, contrasting with Swedish disinflation. It recommends long-end NGB value and FRA steepeners while noting stretched NOK positioning.

Key Takeaways

• 1.Norway and Sweden are experiencing a significant inflation divergence, with Norwegian inflation remaining sticky around 3% while Sweden's has surprised to the downside.
• 2.Norges Bank is expected to remain hawkish, likely delivering another rate hike to 4.50% due to concerns over entrenched inflation and high wage growth.
• 3.Strategic opportunities exist in the STIR (Short Term Interest Rate) curve via Dec26/March27 FRA steepening trades.

Table of Contents

• Current Macro & Market Views
• Macro highlights
• Rates highlights
• FX highlights
• SEB Market Views Summary
• Upcoming Data and Events
• Norges Bank: Market pricing and SEB View
• SEB Macro View Summary
• Standard charts

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