1 May 2015
Close call ahead for the Norges Bank – TDS
FXStreet (Edinburgh) - Strategist Richard Kelly at TD Securities noted the divided opinions regarding the Norges Bank’s decision in its meeting next week.
Key Quotes
“This Norges Bank decision is an extremely close call, with analysts split just about 50/50 on whether or not we’re going to see rate cut”.
“We are in the camp looking for a -25bps cut from the Norges Bank, since in March the message was that if the economy evolves in line with the Norges Bank’s expectations, then we would see a rate cut in Q2, and we think that overall the data has largely come in either in line or slightly softer than what had been expected”.
“There is a chance that the Norges Bank delays the rate hike until its next policy meeting in June, but given that monetary policy acts with a lag, we think that any further delay would be foolish”.
Key Quotes
“This Norges Bank decision is an extremely close call, with analysts split just about 50/50 on whether or not we’re going to see rate cut”.
“We are in the camp looking for a -25bps cut from the Norges Bank, since in March the message was that if the economy evolves in line with the Norges Bank’s expectations, then we would see a rate cut in Q2, and we think that overall the data has largely come in either in line or slightly softer than what had been expected”.
“There is a chance that the Norges Bank delays the rate hike until its next policy meeting in June, but given that monetary policy acts with a lag, we think that any further delay would be foolish”.