- Analytics
- News and Tools
- Market News
- Norges Bank's consistent stance on price stability is an asset for NOK – Commerzbank
Norges Bank's consistent stance on price stability is an asset for NOK – Commerzbank
Antje Praefcke, FX Analyst at Commerzbank, analyzes Norwegian Krone’s (NOK) outlook after Norges Bank kept policy rates unchanged as expected on Thursday's policy meeting.
Norges Bank is keeping the option open to hike the policy rate again if necessary
I have to admit that I am delighted with Norges Bank and its monetary policy. That's what I call a consistent monetary policy in the interests of price stability.
After raising interest rates to 4.50% in December, Norges Bank indicated that the policy rate would probably remain at this level until the fall, but at the same time did not rule out a further tightening should it be necessary.
Norges Bank is keeping the option open to hike the policy rate again if necessary. By the next meeting at the end of March, it will know the inflation data for January and February and, of course, have a whole bunch of fresh economic data at its disposal. If inflation continues to fall, Norges Bank can then revise its projections, definitively signal the end of the interest rate cycle and adjust its interest rate path if it is considering earlier rate cuts by then.
Norges Bank's consistent stance on price stability is an asset for NOK. There are certainly other factors influencing the NOK's performance in the coming weeks, such as the oil price or risk aversion in the market, but monetary policy should provide it with steady support. I therefore continue to feel comfortable with my forecast of an appreciating NOK.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
