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☆ Norway central bank hikes rate by quarter point, likely to act again
▼ + stars: | 2022-12-15 | by ( Victoria Klesty | ) www.reuters.com time to read: +2 min

Of the 24 analysts polled ahead of Thursday's meeting, all but one had anticipated a quarter-point rise, while one had bet on an unchanged rate. Reuters Graphics"The policy rate will most likely be raised further in the first quarter of next year," Norges Bank said in a statement. The Norwegian currency, the crown, strengthened to 10.42 against the euro at 0921 GMT from 10.44 just before the rate announcement. Reuters Graphics"The forecasts for the Norwegian economy are more uncertain than normal, but if the economy evolves as anticipated, the policy rate will be around 3% next year," Norges Bank Governor Ida Wolden Bache said in a statement. Norges Bank, which targets core inflation of 2% over time, on Thursday raised its 2023 core inflation forecast to 5.2% from 4.8% seen in September.

☆ Morning Bid: Thank you, next
▼ + stars: | 2022-12-15 | by ( ) www.reuters.com time to read: +2 min

The U.S. central bank on Wednesday raised interest rates by half a percentage point after delivering four consecutive 75 bps hikes, but signalled more increases in borrowing costs by the end of 2023. With a looming recession on investors' minds there is a hint of scepticism on whether the Fed will follow through on rate hikes in the face of slowing growth. At about 4.9%, markets price a lower peak in the funds rate than the 5.1% median projection from Fed officials. Norges Bank and the Swiss National Bank are also expected to hike rates, with economists forecasting a 25 bp hike in Norway and a 50 bp hike in Switzerland. Reuters Graphics Reuters GraphicsThe country's central bank ramped up cash injections into the banking system and held interest rates unchanged on medium-term policy loans to keep liquidity conditions ample.

SummarySummary Companies G10 central banks deliver 350 bps of rate hikes last monthEmerging central banks tightened policy by 400 bpsHiking cycle coming to an end in many developing economiesLONDON, Dec 2 (Reuters) - The pace and scale of rate hikes delivered by central banks in November picked up speed again as policy makers around the globe battle decade high inflation. Central banks overseeing six of the 10 most heavily traded currencies delivered 350 basis points (bps) of rate hikes between them last month. The European Central Bank, the Bank of Canada, the Swiss National Bank and the Bank of Japan did not hold rate setting meetings in November. The latest moves have brought total rate hikes in 2022 from G10 central banks to 2,400 bps. "Central banks' determination to bring down inflation suggests that policy rates need to go higher still."

☆ The Fed and other central banks could deliver a 'Santa Pause' rally for global stocks this year as they dial back the size of rate hikes, Schwab says
▼ + stars: | 2022-11-08 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

A "Santa Pause" rally for stocks may be taking shape as central banks signal a step-down in rate hikes, Charles Schwab said. The Fed and the BoE are among those indicating they're considering less aggressive rate hikes in the future. The Federal Reserve is among the central banks over the past week that has indicated a slower pace of rate increases. BoE's comment came as it kicked up its benchmark rate by 75 basis points, the largest increase in 33 years. The Bank of Canada last month unexpectedly raised its overnight rate by 50 basis points instead of an anticipated 75 basis points.

"We are raising the policy rate to curb inflation," Governor Ida Wolden Bache said in a statement. The future policy rate path will depend on how the economy evolves." The hike of 25 basis points meant that Norges Bank was sticking to its plan, Nordea Markets said. "A hike by 25 basis points in December is the most likely outcome too. That said, we cannot totally exclude the probability for a 50 basis points hike," its analysts said in a note to clients.

☆ Aggressive rate hikes the name of the game for big central banks
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +5 min

LONDON, Oct 27 (Reuters) - The European Central Bank delivered a second straight 75-basis-point interest rate hike on Thursday, the latest sign that major central banks are serious about curbing hot inflation. Central banks in the 10 big developed economies have raised rates by a combined 2,165 basis points (bps) in this cycle to date, with Japan the holdout "dove." But the pace of these rate rises is starting to slow - Canada just delivered a smaller-than-anticipated rate hike. That would be the fourth straight rate increase of that magnitude, bringing the policy rate to the 3.75%-4.00% range as part of what has been the sharpest set of U.S. rate increases in about 40 years. Reuters Graphics7) SWEDENSweden's central bank raised its key rate on Sept. 20 by a larger-than-expected one percentage point to 1.75%.

As market volatility persists amid Europe's energy crisis and worsening economic forecasts, companies are holding off on their plans to go public. Register now for FREE unlimited access to Reuters.com Register"One transaction alone cannot re-open the floodgates of IPO executions. This requires more predictable macro and reduced equity market volatility," said Antoine de Guillenchmidt, co-head of EMEA Equity Capital Markets at Goldman Sachs. Going forward, as interest rates continue to rise and companies look for financially efficient ways of refinancing their balance sheets, equity capital markets are likely to see a surge in convertible bond activity. "We will see many more convertibles and mandatory convertible instruments because some issuers don't have many alternatives, and investors are still very keen," said Andreas Bernstorff, head of equity capital markets at BNP Paribas.

☆ Norway raises rates by 50 basis points, eyes smaller hikes ahead
▼ + stars: | 2022-09-22 | by ( Victoria Klesty | ) www.reuters.com time to read: +3 min

Register now for FREE unlimited access to Reuters.com RegisterA view shows the building of Norway’s central bank (Norges Bank) in Oslo, Norway, June 23, 2022. REUTERS/Victoria KlestyOSLO, Sept 22 (Reuters) - Norway's central bank raised its benchmark interest rate by 50 basis points to 2.25% on Thursday, as most economists had expected, but said future hikes would be more "gradual", weakening the crown currency. read more"The policy rate will most likely be raised further in November," the bank said in a statement. read moreThe Swiss central bank hiked by 75 bps on Thursday, while the Bank of England is expected to raise rates later in the day. Core inflation, which excludes energy, stood at 4.7%, exceeding the central bank's goal of 2.0%.

☆ Anxious investors are piling into hedge funds
▼ + stars: | 2022-09-20 | by ( Julia Horowitz | Cnn Business | ) edition.cnn.com time to read: +7 min

London (CNN Business) For years, the climate for hedge funds was tough. That's boosting interest in hedge funds, through which professional investors try to beat the market by deploying less-conventional approaches. Investors trying to capitalize on turmoil in commodity markets have done particularly well, according to Robert Sears, chief investment officer at Capital Generation Partners, which invests in hedge funds for wealthy families. "Until we get into the cycle of earnings going down and the Federal Reserve starting to ease policy, really you're set for an environment when hedge funds should do quite well," Sears told me. Investors see an 80% probability that the Fed will hike interest rates by three-quarters of a percentage point on Wednesday.

☆ Norway's $1.2 trillion fund sets 2050 net zero target
▼ + stars: | 2022-09-20 | by ( ) edition.cnn.com time to read: +1 min

Oslo Norway's $1.2 trillion wealth fund, the world's largest, said on Tuesday it would decarbonise its holdings by pushing firms to cut their greenhouse gas emissions to nil by 2050, in line with the Paris Agreement. The fund invests the petroleum revenues from Western Europe's biggest oil and gas producer for future generations in stocks, bonds, property and renewable projects abroad. "Our long-term return will completely depend on how the companies in our portfolio manage the transition to a zero emissions society," Chief Executive Nicolai Tangen of Norges Bank Investment Management said in a statement. Tuesday's plan follows a proposal made in April by the Norwegian government, which said the fund should push the 9,300 companies it invests in to cut their emissions to nil by 2050. "We will engage the companies to reach this target by setting credible preliminary targets and creating plans to reduce their direct and indirect emissions of greenhouse gases," Chief Governance and Compliance Officer Carine Smith Ihenacho said.

☆ Norway's $1.2 trillion wealth fund sets 2050 net zero target
▼ + stars: | 2022-09-20 | by ( ) edition.cnn.com time to read: +1 min

Norway’s $1.2 trillion wealth fund, the world’s largest, said on Tuesday it would decarbonise its holdings by pushing firms to cut their greenhouse gas emissions to nil by 2050, in line with the Paris Agreement. The fund invests the petroleum revenues from Western Europe’s biggest oil and gas producer for future generations in stocks, bonds, property and renewable projects abroad. The fund owns on average owns 1.3% of all listed global stocks and its size is equivalent to $219,000 for every Norwegian man, woman and child. The fund published its first expectations on how companies should address climate change more than a decade ago. It tracks climate-related risks, defined as the impact climate change may have on the assets the fund invests in, but also the opportunities that could arise for individual firms successfully adapting to it.

☆ Norway to hike rates by 50 basis points this week - Reuters poll
▼ + stars: | 2022-09-19 | by ( ) www.reuters.com time to read: +2 min

A view shows the building of Norway’s central bank (Norges Bank) in Oslo, Norway, June 23, 2022. Of the 30 economists surveyed, 28 predicted Norges Bank will hike by 50 basis points (bps) on Sept. 22 to a rate of 2.25%, the highest level since 2011. A majority of participants in the Reuters poll now say rates will likely hit 2.75% by the end of the year, well above the 2.25% projected by the central bank in June. The central bank last week released a businesses survey indicating a weaker outlook for companies. The Reuters poll predicted that Norges Bank could begin cutting its policy rate in 2024.

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