EUR/NOK: Commerzbank expects Norges Bank's rate decision to be broadly neutral for the krone.

On Thursday, Norges Bank will disclose its interest rate decision. According to Commerzbank economists, the central bank will keep its 0.75 percent interest rate while reiterating its

May 04, 2022 - 03:39 PM 271 views

EUR/NOK: Commerzbank expects Norges Bank's rate decision to be broadly neutral for the krone.

Market News

© EUR/NOK: Commerzbank expects Norges Bank's rate decision to be broadly neutral for the krone.

Free Enquiry Now

On Thursday, Norges Bank will disclose its interest rate decision. According to Commerzbank economists, the central bank will keep its 0.75 percent interest rate while reiterating its intention to raise interest rates in June; the Norges Bank meeting will have a modest influence on the krone.

NOK is under negative pressure due to risk aversion.

         I expect Norges Bank to leave everything on hold at its meeting tomorrow, signalling that the next move will be made in June. It can also wait and observe how things progress this way.

       Because the Norges Bank's price rise cycle has already been factored in, the potential for the NOK to appreciate for monetary policy reasons appears to be exhausted for the time being.

For NOK, the rate decision is expected to be mostly neutral. "

"Risk aversion is the dominant force right now, and it's putting huge negative pressure on both NOK and SEK."

Share With -

 

No comments yet for this post

Please Login to comment this article.

If not a registered user yet, Please signup here