Market Information Tuesday 12 May 2026

Norway’s core inflation rose to 3.2% year-on-year in April, up from 3.0% in March, matching both analyst forecasts and the projection of Norges Bank. The figure remains well above the central bank’s 2.0% target, driven by rising wages and high energy prices. Norges Bank responded by raising its policy rate by 25 basis points to 4.25%, ahead of analyst expectations. Analysts do not foresee another hike in June but expect one later in the year.

Peace negotiations between the US and Iran are deteriorating after both sides rejected each other’s latest proposals. Iran offered to transfer part of its highly enriched uranium stockpile to a third country but ruled out dismantling its nuclear facilities, while also demanding war reparations, lifting of sanctions, and control over the Strait of Hormuz. President Trump dismissed the offer as “totally unacceptable.” The standoff keeps the strait effectively closed, pushing Brent crude up 3.5% to near $105 per barrel, while the 10-week conflict has killed thousands and upended global energy markets.

The Bank of Japan (BOJ) has signalled a possible rate hike as early as its June 16 meeting, with traders pricing in a 77% probability of a rate hike. The April board meeting ended in an unusually divided 6-3 vote to hold rates at 0.75%, the lowest among major economies. Several board members flagged upside inflation risks linked to the Middle East conflict, arguing that rates may need to rise toward the neutral level sooner than previously anticipated.

The 6M Euribor decreased with 5 basis points to 2.47% compared to previous business day. The 10Y Swap increased with 4 basis points to 3.07% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.