Norges Bank Hints At Additional Tightening

RTTNews | 497天前
Norges Bank Hints At Additional Tightening

(RTTNews) - Norway's central bank lifted the benchmark rate by a steeper-than-expected 50 basis points and hinted at another increase in August as higher wage growth and a weaker currency are set to push inflation higher in coming months.

The Monetary Policy and Financial Stability Committee of Norges Bank decided to hike the policy rate to 3.75 percent from 3.25 percent. Economists were looking for a quarter-point raise.

The previous change was in May, when the rate was increased by 25 basis points.

Policymakers assessed that a higher policy rate than previously signaled is needed to bring inflation down to target.

"If we do not raise the policy rate, prices and wages could continue to rise rapidly and inflation become entrenched," Governor Ida Wolden Bache said.

"It may then become more costly to bring inflation down again," Bache added.

The governor said the future interest rate path depends on economic developments. The policy rate forecast was revised up since the March meeting with the rate projected to rise to 4.25 percent in the course of autumn.

The newly forecasted peak rate of 4.25 percent will be hit by the end of the third quarter, ING economists said. This will put the Norwegian krone in a stronger position, especially against its closest peer Swedish krona.

There is a good chance that the central bank will hike the rate by 50 basis points again at the next meeting in August, Capital Economics' economist Jack Allen-Reynolds said. The currency is likely to see a renewed depreciation in the coming months as economic growth remains weak or slows in most advanced economies, weighing on investor risk appetite and taking a toll on high-beta currencies like the krone, the economist noted.

read more
Norway Central Bank Keeps Rate Unchanged As Expected

Norway Central Bank Keeps Rate Unchanged As Expected

Norges Bank left its benchmark rate unchanged on Thursday and suggested that the policy rate will be kept at the current level until the end of this year although the time to ease is approaching. The Monetary Policy and Financial Stability Committee, headed by Governor Ida Bache, decided to hold the policy rate at 4.50 percent.
RTTNews | 42天前
Nokia Posts Q4 Loss, Warns On Q1; Plans EUR 600 Mln Buy Back; Stock Up

Nokia Posts Q4 Loss, Warns On Q1; Plans EUR 600 Mln Buy Back; Stock Up

Finnish network company Nokia Corp. reported Thursday a loss in its fourth quarter, compared to prior year's profit, amid weak net sales. Looking ahead, the company expects challenging environment to continue, particularly in the first quarter. Further, the Board proposed dividend authorization of 0.13 euro per share and initiated two year 600 million euros buyback program.
RTTNews | 280天前
Nokia Q3 Results Down, To Cut Up To 14,000 Jobs; Stock Dips

Nokia Q3 Results Down, To Cut Up To 14,000 Jobs; Stock Dips

Shares of Nokia Corp. were losing around 4 percent in the morning trading in Helsinki as well as around 3 percent in pre-market activity on the NYSE after the Finnish telecom major reported Thursday a sharp drop in its third-quarter profit and revenues amid ongoing macroeconomic challenges. Separately, Nokia announced a cost reduction program, expecting to cut up to 14,000 jobs.
RTTNews | 378天前
Norges Bank Signals December Hike On High Inflation

Norges Bank Signals December Hike On High Inflation

Norway's central bank raised its key interest rate by 25 basis points on Thursday, as signaled during the previous meeting, and sounded more hawkish than expected with Governor Ida Wolden Bache saying that there would likely be another hike in December as inflation remains significantly above the bank's 2 percent target.
RTTNews | 406天前
Norway Central Bank Lifts Key Rate; Signals Another Hike In June

Norway Central Bank Lifts Key Rate; Signals Another Hike In June

Norway's central bank decided to lift the key rate by a quarter-point on Thursday and hinted at another increase in June as the weaker krone pushed up import price inflation. The Monetary Policy and Financial Stability Committee of Norges Bank unanimously decided to lift the policy rate to 3.25 percent from 3.00 percent. The previous change in the policy rate was a quarter point-hike in March.
RTTNews | 546天前
Nokia Q1 Profit Rises, Comparable Results Down, Confirms View; Stock Dips

Nokia Q1 Profit Rises, Comparable Results Down, Confirms View; Stock Dips

Finnish critical networks and communications company Nokia Corp. reported Thursday higher profit and net revenues in its first quarter with improved performance in most of its segments. Comparable earnings and margin, meanwhile, declined from last year. Further, the firm maintained its fiscal 2023 and long term targets. Nokia shares were losing around 5 percent in the morning trading in Finland.
RTTNews | 560天前
Norges Bank Lifts Key Rate By 25 Bps; Hints At More Tightening

Norges Bank Lifts Key Rate By 25 Bps; Hints At More Tightening

Norway's central bank decided to raise its policy rate by 25 basis points to curb inflation amid the tight labor market conditions and hinted at another rate hike in May and beyond. Norges Bank's Monetary Policy and Financial Stability Committee on Thursday unanimously decided to lift the policy rate to 3.00 percent from 2.75 percent.
RTTNews | 588天前