Norges Bank: Key rate at 3% by the end of 2023 – Nordea

Economists at Nordea see both faster and more rate hikes from Norges Bank ahead. They expect the key rate at 3% by the end of 2023.

Key rate at 2% by end-2022

“Our new forecast implies a key rate at 2% by the end of 2022 and 3% by the end of 2023. We have raised our end of 2023 forecast by 50 bps and expect the two extra rate hikes of 25 bps to arrive already this year.” 

“Looking beyond 2023, the risks to the rate path are even more to the upside. With higher global rates, it will be hard for Norges Bank to insist that domestic rates should head lower.”

“For 2024 and beyond, we believe rates will end a fair bit higher than implied by market forwards.”