NOK: Regional Survey

Published 09/11/2015, 06:33 AM
Updated 05/14/2017, 06:45 AM

The aggregate production index fell further from 0.13 to 0.06 - the lowest level since 2009. This implies GDP growth around zero in the next two quarters.

While some market participants had expected an even weaker report, the figure is still lower than Norges Bank forecast back in June and will probably lead to a downward adjustment of its mainland GDP forecast in September, which would be a negative factor for the Norges Bank rate path to be presented on 24 September.

Supported by the downside risk stemming from the recent fall in the oil price, we still expect this to trigger a 25bp 'insurance' rate cut in September, despite the weaker NOK, higher CPI and tighter housing market.

To Read the Entire Report Please Click on the pdf File Below.

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