Norges Bank Survey Shows Activity Holding Up, Cooling Rate Bets.

EUROPEAN Central Bank ; BOARD of Governors of the Federal Reserve System (U.S.)

Norwegian companies are expecting a slight increase in business activity for the remainder of the year, according to a survey conducted by Norges Bank. The survey results suggest that the country's central bank may not pursue monetary easing before the end of the year. The construction and retail sectors have experienced weakened prospects, but other industries are seeing higher activity. The survey also indicates relatively robust labor and housing markets, which have made Norges Bank officials more cautious about reversing post-pandemic tightening. The data from the survey will be considered by policymakers at their upcoming meeting, where a reduction in interest rates is expected to be signaled. However, the report also notes that capacity utilization is increasing, which could indicate potential inflationary pressures and may influence the central bank's decision. [Extracted from the article]

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