Norges Bank to leave bank rates unchanged

Norway's August data is historically very volatile. However since Norges Bank's last rate meeting (18th June) the krone has depreciated by approx. 6% (peaking at 10%) which should start to be reflected in the inflation rate despite the time lag. That means the inflation rate remains high and the core rate above Norges Bank's target - with a rising trend. 

"That suggests that at the end of September Norges Bank will leave rates unchanged even if economic data continues to disappoint, unemployment rises and Norges Bank's regional network survey amongst companies, due for publication tomorrow, may well be even slightly worse than in May. We stick to our guns: as long as NOK remains weak enough from Norges Bank's point of view it will not change its monetary policy", says Commerzbank.