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18 Mar 2015
Norges bank may cut rates by 25bps tomorrow – ING
FXStreet (Barcelona) - Rob Carnell of ING sees the possibility of a 25bps rate cut by the Norges Bank tomorrow, which would take its key policy rate down to 1.0%.
Key Quotes
“We think that there is a reasonable chance that Norges Bank cuts its key policy rate tomorrow from 1.25% to 1.0%. One key driver for the cut, if it happens, is the Riksbank recent cut in their rates and adoption of QE (admittedly fairly half-heartedly), and of course, the recent rally of the currency vs the EUR as the ECB finally unleashed its own QE programme.”
“Although the NOK has made some ground against the EUR, it has been weak against the USD, and in historical terms, its trade weighted exchange rate is weaker rather than stronger, and does not really merit much further defence beyond today.”
Key Quotes
“We think that there is a reasonable chance that Norges Bank cuts its key policy rate tomorrow from 1.25% to 1.0%. One key driver for the cut, if it happens, is the Riksbank recent cut in their rates and adoption of QE (admittedly fairly half-heartedly), and of course, the recent rally of the currency vs the EUR as the ECB finally unleashed its own QE programme.”
“Although the NOK has made some ground against the EUR, it has been weak against the USD, and in historical terms, its trade weighted exchange rate is weaker rather than stronger, and does not really merit much further defence beyond today.”