Norges Bank kept rates steady - BBH

Research Team at BBH, notes that the Norges Bank kept rates steady at 0.50%, as expected.

Key Quotes

“Norway also reported Q1 GDP data at the same time as the Norges Bank decision, with GDP coming in stronger than expected. Overall GDP rose 1.0% q/q vs. 0.1% expected, while mainland GDP rose 0.3% q/q vs. 0.2% expected. Norges Bank is no hurry to move again cutting the deposit rate by 25 bp to 0.50% in March. CPI inflation reported earlier this week is steady in the low 3% area.

Elsewhere, Sweden reported slightly weaker than expected April CPI data. Headline CPI rose 0.8% y/y vs. 0.9% expected, while underlying inflation rose 1.4% y/y vs. 1.5% expected. Here too, the Riksbank is likely on hold for the time being after the larger than expected rate cut back in February to -0.50%.”