HALISTER1: Markets Too Complacent on Near-Term Norges Bank Easing: Danske

Markets Too Complacent on Near-Term Norges Bank Easing: Danske

(Bloomberg) -- Weaker-than-expected August Norway CPI data illustrates the one-off distortions of food and airfares in elevated July print, with investors too complacent about risk of near-term Norges Bank easing, Danske Bank analyst Kristoffer Kjaer Lomholt writes in e-mailed comments.
  • Investors last month completely repriced Norges Bank monetary policy for the September meeting based on CPI and housing market inflation prints
    • These concerns have diminished with today’s data, in addition to talk of tougher macro-prudential measures to stem house price growth
  • One-off rise in food and airfares that led to elevated July CPI print have dropped out
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
1037Z NO (Norges Bank)

People
Kristoffer Lomholt (Danske Bank A/S)

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