Norges Bank: One (More) and Done – TDS

Research Team at TDS, suggests that as almost unanimously expected, the Norges Bank held their key policy rate at 0.50% today.

Key Quotes

“The Executive Board viewed developments in the economy as evolving in line with their previous expectations.

Owing to new government stimulus, higher oil prices, and the relatively decent 16Q1 GDP report released today, we have revised our expectations for monetary policy, and expect the Norges Bank to cut rates only one more time this year, at its June meeting.

The coordination of monetary easing and the further fiscal stimulus announced yesterday should help provide solid support to GDP over the coming years and help offset some of the wealth shock associated with the weaker terms of trade from lower oil prices.”