19 Feb 2015
Norges Bank could announce a rate cut in March – Danske Bank
FXStreet (Edinburgh) - In the view of Analyst at Danske Bank Kristoffer Lomholt, the Norwegian central bank could ease further in its March meeting.
Key Quotes
“With the current oil price significantly lower than Norges Bank’s projection from December together with recent additional easing from close trading partners, we expect Norges Bank to cut rates in March by 25 bps”.
“In light of current market pricing (suggesting only a 50% chance of a 25bps cut in March) we expect EUR/NOK to move temporarily higher in the coming month towards 8.65”.
“As flagged above, we expect the Norwegian economy to hold up well while the oil price gradually rises throughout the year. Hence, we expect a dovish surprise in March but in our view the market is too dovish in the medium to long term, expecting more than two rate cuts in 2015”.
“We expect a re-pricing of Norges Bank, ECB QE and an oil price recovery to drag the cross lower towards 8.50 in 3M, 8.25 in 6M and 8.15 in 12M”.
Key Quotes
“With the current oil price significantly lower than Norges Bank’s projection from December together with recent additional easing from close trading partners, we expect Norges Bank to cut rates in March by 25 bps”.
“In light of current market pricing (suggesting only a 50% chance of a 25bps cut in March) we expect EUR/NOK to move temporarily higher in the coming month towards 8.65”.
“As flagged above, we expect the Norwegian economy to hold up well while the oil price gradually rises throughout the year. Hence, we expect a dovish surprise in March but in our view the market is too dovish in the medium to long term, expecting more than two rate cuts in 2015”.
“We expect a re-pricing of Norges Bank, ECB QE and an oil price recovery to drag the cross lower towards 8.50 in 3M, 8.25 in 6M and 8.15 in 12M”.