1 May 2015
No rate cut expected by Norges Bank next week – Danske Bank
FXStreet (Edinburgh) - In the view of analysts at Danske Bank, the Norges Bank could refrain from cutting rates at its meeting in the upcoming week.
Key Quotes
“In Norway we do not expect Norges Bank to touch interest rates on Thursday”.
“When the March monetary policy report was unveiled, the bank signalled clearly that interest rates would be cut by the summer if economic developments panned out as forecast”.
“The interest rate path presented in the report did include a chance of a rate cut as early as May, but we had the clear impression that this would require a fairly drastic change in the outlook”.
“Furthermore the main argument for not lowering interest rates in March was the bank wanting confirmation that the economy was deteriorating and that the housing market was cooling off as expected”.
“As there has been only the one round of monthly data since the March meeting, this in itself would indicate that June would be the most likely timing for a change unless things taking a rapid turn for the worse”.
Key Quotes
“In Norway we do not expect Norges Bank to touch interest rates on Thursday”.
“When the March monetary policy report was unveiled, the bank signalled clearly that interest rates would be cut by the summer if economic developments panned out as forecast”.
“The interest rate path presented in the report did include a chance of a rate cut as early as May, but we had the clear impression that this would require a fairly drastic change in the outlook”.
“Furthermore the main argument for not lowering interest rates in March was the bank wanting confirmation that the economy was deteriorating and that the housing market was cooling off as expected”.
“As there has been only the one round of monthly data since the March meeting, this in itself would indicate that June would be the most likely timing for a change unless things taking a rapid turn for the worse”.