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10 Feb 2015
Norges bank may cut rates in March - Danske
FXStreet (Barcelona) - Jens Nærvig Pedersen, Senior Analyst at Danske Bank, previews Norway’s today’s inflation data release, and further expects the Norges bank to cut rates in March.
Key Quotes
“In Norway inflation has faded somewhat into the background since Norges Bank temporarily ‘suspended’ the inflation target in December.”
“We nevertheless expect core inflation to hit 2.5% y/y in January, driven by higher prices for imported goods, which is somewhat above the central bank’s projection of 2.2% in the December monetary policy report.”
“Although inflation is not the most important variable at the moment, the figures will underline one thing: Norway has the lowest real interest rate in the West.”
“while the NOK remains very attractive from a fundamental point of view, we think that a Norges Bank (NB) rate cut in March will temporarily weigh on the NOK as this is not fully priced in.”
Key Quotes
“In Norway inflation has faded somewhat into the background since Norges Bank temporarily ‘suspended’ the inflation target in December.”
“We nevertheless expect core inflation to hit 2.5% y/y in January, driven by higher prices for imported goods, which is somewhat above the central bank’s projection of 2.2% in the December monetary policy report.”
“Although inflation is not the most important variable at the moment, the figures will underline one thing: Norway has the lowest real interest rate in the West.”
“while the NOK remains very attractive from a fundamental point of view, we think that a Norges Bank (NB) rate cut in March will temporarily weigh on the NOK as this is not fully priced in.”