Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
Norway’s core inflation came in path at the September meeting. However, the inflation outlook is not expected to be decisive for if Norges Bank will commit to a September hike at the meeting next week or not.
The weakness in growth among Norway’s trading partners and the escalation of the trade war make markets expect Norges Bank to signal a more cautious stance at the meeting next week (read our preview here).
"We still believe Norges Bank will repeat the sentence “…the policy rate will most likely be increased further in the course of 2019”, but no longer single out September as the most likely meeting for the next hike," DNB Markets reported.
"We expect the hike to be postponed to December. Core inflation (CPI-ATE) was 2.2 percent y/y in July, down from 2.3 percent in June," the report added.
Core inflation only fell by 0.01 percentage-point from 2.258 percent to 2.245 percent. Consensus expected 2.2 percent, according to Bloomberg and Norges Bank projected 2.4 percent in the June MPR. Prices on imported goods rose by 1.8 percent y/y in July, up from 1.5 percent y/y in June.
Other core prices rose by 2.5 percent y/y in July, unchanged from June. (Due to rounding it seems like there is inconsistency between the core inflation number and import and domestic inflation).
Meanwhile, the total consumer price index rose by 1.9 percent y/y in July, unchanged from June. Bloomberg Consensus expected 1.8 percent, Norges Bank forecasted 1.8 percent, vs expectations of 1.7 percent. EUR/NOK fell approximately 2 percent after the release.
