Macro Strategy Views: Hawkish Norges Bank and FAITing Riksbank

Today, we discuss why we expect Norges Bank to lift the rate path this week, signalling a full rate hike by Q2 22. We argue why, from a risk-reward perspective, it makes sense to position for higher short-end and belly rates, while any NOK strength is likely to be short lived. We also discuss whether the Fed’s FAIT has implications for the Riksbank. Global Head of FI&C Research Thomas Harr chairs today’s podcast and he is joined by Chief Strategist Kristoffer Kjær Lomholt and Chief Economist for Sweden Michael Grahn.