– These numbers are bad news for rent. Inflation figures are higher than expected, both for headline inflation and core inflation.
So says Kerry M. Knudsen, chief economist at SpareBank 1 SR-Bank Stock trading.
New euro zone inflation figures were presented on Friday. The figures show an increase in price inflation of 2.6 percent in May. Borsen wrote that a 2.5 percent increase was expected in advance.
– Unfortunate for Norges Bank
Price inflation in the eurozone in April reached 2.4 percent, which is not far from the 2 percent target.
The European Central Bank is scheduled to hold an interest rate meeting next week, Thursday, June 6. They have kept interest rates unchanged since September.
– The Central Bank was clear that there would be cuts. However, these numbers may shake up that cut or postpone the cut expected later this fall. For Norges Bank, this is also unfortunate. The eurozone is our most important trading partner, and cutting the deferred interest rate here is an argument for cutting the deferred interest rate in Norway, Knudsen tells Børsen.
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We believe in deferred cuts in Norway
Central Bank Governor Ida Wolden Bache. Image: NTP
The Bank of Norway's interest rate has reached 4.5 percent since the last increase in December. Previously, Central Bank Governor Ida Wolden-Basch indicated that the first rate cut would come in September, but several experts have recently indicated that it is more likely to come later.
“The way we evaluate the outlook now, the interest rate is likely to remain at the current level for some time to come,” Central Bank Governor Ida Wolden-Basch said after the interest rate meeting earlier in May.
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