Sentiment Analytics Point to Norges Bank Rate Hike

  • Monday, September 17, 2018

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The Most Important Central Bank Releases This Week
central bank communications analytics research

Among the three G10 currency central bank policy meetings this week, the BOJ and SNB are likely to take a back seat to the Norges Bank when it comes to market impact. Norwegian policymakers will convene and likely hike rates in response to inflation recently hitting 3% in Norway. BOJ policymakers are unlikely to change policy this week amid modestly improving Japanese economic conditions throttled by stubbornly low inflation. In Switzerland, SNB policymakers face the unique challenge of yet again combating currency appreciation. While Swiss policymakers are unlikely to formally change policy, they may issue dovish remarks indicating willingness to intervene and protect the CHF from further appreciation.

ECB policymakers formally announced last week that they would halve their monthly bond purchases. This week, three policymakers will deliver speeches that are likely to support this move with somewhat hawkish remarks. Andrew Haldane, the BOE’s only scheduled speaker this week, is likely to sound less upbeat as the UK continues to operate under an enormous cloud of uncertainty with Brexit negotiations still ongoing.

In Australia, the RBA will release the minutes from its most recent meeting, and Governor Lowe is scheduled to speak. These communications will likely echo the slightly hawkish tone of the policy statement, suggesting policymakers have become more optimistic in their outlook. Finally, the minutes from the Riksbank’s latest policy meeting will strike a different tone as policymakers grapple with sluggish growth and rising inflation.

This is an abbreviated version of the Cyborg Analyst. The full weekly report contains detailed analysis based on Prattle’s Central Bank Analytics. Subscribe here.

The Prattle Team

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