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Investors underestimating pace of Norges Bank hikes

This morning’s policy decision double-header played out as planned, with the Swiss National Bank maintaining the status quo and the Norges Bank finally pulling the trigger on its tightening cycle. But while rate hikes in Switzerland are many years away, we now expect the Norges Bank to raise rates back to their pre-virus level (1.50%) by the end of next year, which is faster than investors expect.

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