Norges Bank Regional Network Survey (Q2): Slightly better outlook, but wide variations
- Regional Network contacts expect some increase in overall activity in 2023 Q2, with a further pick-up in Q3.
- In most sectors, developments are more favourable than contacts expected in the previous survey, but there is still considerable cross-sector variation.
- Contacts expect annual wage growth of 5.4% in 2023, which is substantially higher than the February estimate.
via Norges Bank
Reaction details (09:12)
- Modest upside was seen in the NOK, with EUR/NOK slipping from 11.5500 to 11.5200 as the release's relatively robust growth commentary offsets some of the concern around surprisingly soft Norwegian growth data.
Analysis details (09:01)
- Carried out 2 May – 2 June 2023
- The final key input ahead of next week's policy announcement, where the Norges Bank is forecast to hike by 25bp to 3.50% from 3.25%, a move which would chime with the guidance from May and is justified as a balancing act between a CPI resurgence and surprisingly soft growth data.
- Today's Regional Network Report seemingly gives the Bank enough cover on the growth front to continue tightening and perhaps to lift the repo path forecast to or even above a 4.00% peak (currently 3.60%).
15 Jun 2023 - 09:00- ForexData- Source: Norges Bank
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