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6 Feb 2015
Focus on the Norges Bank regarding a probable rate cut – Rabobank
FXStreet (Edinburgh) - The next NB meeting in mid-March could see the Nordic central bank easing further its monetary policy via another rate cut, suggested Jane Foley, Senior Currency Strategist at Rabobank.
Key Quotes
“According to the US EIA, in 2012 Norway was the world’s eleventh largest oil exporter; a significant feat for a country of just over 5 mln people”.
“Even though Norway is far better positioned to cope with the blow of weak oil prices than developing countries, the impact has been marked”.
“Exports of crude and natural gas account for over 50% of all merchandise exports”.
“There was a clear change in the stance of the Norges Bank in Q4. The key policy rate was cut by 25 bps to 1.25% on December 10 and the Bank left the door open for another move lower”.
“While oil prices are now off their lows, there is still a risk of a rate cut at the March 19 policy meeting which could support EUR/NOK in a 1 to 3 mth view”.
Key Quotes
“According to the US EIA, in 2012 Norway was the world’s eleventh largest oil exporter; a significant feat for a country of just over 5 mln people”.
“Even though Norway is far better positioned to cope with the blow of weak oil prices than developing countries, the impact has been marked”.
“Exports of crude and natural gas account for over 50% of all merchandise exports”.
“There was a clear change in the stance of the Norges Bank in Q4. The key policy rate was cut by 25 bps to 1.25% on December 10 and the Bank left the door open for another move lower”.
“While oil prices are now off their lows, there is still a risk of a rate cut at the March 19 policy meeting which could support EUR/NOK in a 1 to 3 mth view”.