17 Mar 2015
Norges Bank could lower its refi rate by 25 bp on Thursday – Danske Bank
FXStreet (Edinburgh) - In the view of Jens Pedersen, Senior Analyst at Danske Bank, the Nordic central bank is expected to cut rates on Thursday and probably again before June.
Key Quotes
“FX markets have turned their attention to the NOK this week, where the move lower in the oil price together with further dovish pricing of Norges Bank ahead of the scheduled monetary policy meeting Thursday sent EUR/NOK above 8.70 for the first time since mid February”.
“We expect Norges Bank to cut rates by 25bp on Thursday and to present a new interest rate path with a 50% implied probability of another rate cut before June”.
“We do not expect Norges Bank to cut rates further post March and we still expect a repricing of Norges Bank, ECB QE and an oil price recovery to drag the cross lower towards 8.50 in 3M, 8.25 in 6M and 8.15 in 12M”.
Key Quotes
“FX markets have turned their attention to the NOK this week, where the move lower in the oil price together with further dovish pricing of Norges Bank ahead of the scheduled monetary policy meeting Thursday sent EUR/NOK above 8.70 for the first time since mid February”.
“We expect Norges Bank to cut rates by 25bp on Thursday and to present a new interest rate path with a 50% implied probability of another rate cut before June”.
“We do not expect Norges Bank to cut rates further post March and we still expect a repricing of Norges Bank, ECB QE and an oil price recovery to drag the cross lower towards 8.50 in 3M, 8.25 in 6M and 8.15 in 12M”.