Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Norway February inflation close to Norges Bank's forecast

The Norway's February core inflation is expected to be closer to Norges Bank's forecast.  That means that running inflation should have no impact on the changes to the new interest rate forecast
The last important figure before the March MPC meeting will be February core inflation published at 10:00 on Tuesday 10 March. 

Nordea Bank notes in a report on Friday:

  • We forecast unchanged core inflation from January at 2.4%. If that is the case inflation will be marginally at downside to Norges Bank forecast at 2.5%, after being somewhat on the high side in January. That means that running inflation should have no impact on the changes to the new interest rate forecast.

  • Base effects on clothes and shoes are pulling up year on year growth from January to February in our forecast. But on the other hand we have reasons to believe the February rise in airfares this year was more moderate than last year.

  • The weakening of the NOK through most 2014 is contributing to keeping inflation at the relatively high level, but it is probably still too early to see strong effects of the rather extreme weakening towards the end of 2014. But from May we could see inflation above target.

 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.