Daily Management Review

Norwegian Unemployment Drops To Lowest In Nine Years


06/04/2018


The analysts’ prediction of rate hike for September has been reinforced with the performance of May 2018.



The fall of unemployment in Norway has surpassed expectations, whereby reaching a new low in nine-years, amid economic expansion with the rising crude oil prices, the main export for the country. As a result, the predictions for a rate in September have been reinforced.
 
The unemployment sectors that are seasonally adjusted, like “job training” category, came down by “3,220 to 80,210 people in May”, as per the Norwegian Labour and Welfare Administration’s data, which marks the lowest from March 2009. Average analysts expectations on Reuters poll were a “more moderate drop to 82,600 people in May”. In a note, the DNB Markets stated:
“Unemployment (data) is stronger than expected and supports our view of a first rate hike from Norges Bank in September”.
 
In March, the Norges Bank has reported that there were plans of hiking “key deposit rate” post in summer, which as per most analyst interpretations meant in the month of September. However, casting a glance at the “low inflation readings”, some analysts are questioning the above mentioned outlook. As Nordea Markets stated:
“Clearly some of the doubt about a September hike is removed with today’s figure the trend down remains strong”.
 
On June 21, 2018, the central bank is scheduled to hold its next meeting to discuss rates. While Reuters informed:
“NAV’s unadjusted unemployment rate fell to 2.2 percent, as expected, from 2.4 percent the previous month”.
The “Labour and Social Affairs Minister”, Anniken Hauglie further stated:
“The good May numbers from NAV show that the upswing continues with great strength”.
 
 
 
References:
reuters.com







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