Norway 360 Weekly Market Review

Norges Bank has resumed rate hikes to 4.25% with SEB forecasting a peak of 4.50% by June. The NOK remains supported by central bank divergence despite energy price headwinds.

Key Takeaways

• 1.Norges Bank has shifted to a hawkish stance, resuming rate hikes with a target peak of 4.50% to prevent inflation expectations from becoming entrenched.
• 2.The Norwegian Krone (NOK) has shown resilience despite falling energy prices, driven by central bank divergence and widening rate spreads over the Swedish Krona (SEK).
• 3.The successful launch of Norges Bank central bank certificates has introduced a premium (5-10 bps) over government bills, impacting structural liquidity.

Table of Contents

• Current Macro & Market Views
• Standardized material – FX & Fixed Income Markets
• Macro highlights
• Rates highlights (I)
• Rates highlights (II)
• FX highlights
• SEB Market Views Summary
• Upcoming Data and Events
• Norges Bank: Market pricing and SEB View
• SEB Macro View Summary

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