Norges Bank faces strong rise in inflation - Commerzbank

It will be interesting to see the Norges Bank’s reaction to the strong rise in inflation, said Antje Praefcke, analyst at Commerzbank. 

Key quotes

“An interesting question in coming weeks will be Norges Bank’s reaction to the significant rise in inflation. Even with inflation rates well above its 2.5% target, Norges Bank has stuck to its accommodative monetary policy in recent months.” 

“Now it is faced with an inflation rate of 4.4% in July and a core rate of 3.7%, while the economy is weak at the same time, which has raised the spectre of stagflation (albeit misplaced). Nonetheless, this does not bode well for the Norwegian krone.”