Norges Bank says policy cannot see through supply shock

Norges Bank's statement that policy cannot see through the supply shock indicates a recognition that current inflationary pressures are driven by external factors rather than domestic monetary conditions. This suggests that their rate decisions might remain cautious in the short term, as the bank acknowledges the limits of policy in addressing such shocks, which could have implications for the NOK and related asset classes. Investors should monitor market reactions to gauge sentiment on the sustainability of their current policy stance.