BoE and Norges Bank to keep markets engaged – Danske Bank

Research Team at Danske Bank, suggests that after some very quiet days we have several important data releases and events today.

Key Quotes

“We expect Norges Bank to keep the sight deposit rate unchanged at 0.50%. We expect NB to re-iterate its dovish bias from the March meeting but to deliver a balanced message. The key thing to look for will be how NB evaluates the trade-off between a higher oil price and the substantially stronger NOK. Also look out for the Norwegian Q1 GDP data. We expect the mainland economy grew 0.3% q/q.

Despite it being 'Super Thursday' in the UK, we expect the BoE meeting to be a non-event as BoE is unlikely to do anything ahead of the EU referendum. Although we already know much about the BoE's view on Brexit, any comments on Brexit and uncertainties will be thoroughly analysed. The press conference is likely to centre on the upcoming referendum.

In Sweden, we expect both CPI and CPIF to print slightly below Riksbank's forecasts as we estimate CPI and CPIF inflation rates were 0.8% y/y and 1.3% y/y in April, respectively. Inflation is likely to remain below Riksbank's 2% target due to the low new wage deal at 2.2% and the stronger SEK.”