Norges Bank raised the key interest rate to 4.50% in December. Antje Praefcke, FX Analyst at Commerzbank, analyzes Norwegian Krone’s (NOK) outlook ahead of another interesting policy meeting in Norway.
Norges Bank likely to remain restrictive
I assume that Norges Bank will not make any major changes to its December assessment. It may remove the reference to its willingness to raise the key interest rate again from the statement. But I can't imagine much more than this admission that interest rates may now have peaked.
In my opinion, anything else would be a bad sign for the NOK given the persistent inflation. However, I am confident that Norges Bank will stand firm in a short statement today, and therefore also confident for the Krone.
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