16 Jun 2015
Norges Bank could turn to a hawkish stance – TDS
FXStreet (Edinburgh) - According to Strategist Jacqui Douglas at TD Securities, the Nordic central bank could disappoint market expectations on Thursday and refrain from lowering its rates.
Key Quotes
“The Norges Bank still seems to be very reluctant to ease further given the concerns about high household debt, and the strength of the oil investment survey gives it the cover it needs to resist any further easing”.
“If the Norges Bank had felt any kind of urgency to ease, it would have met market expectations and cut rates at its May meeting”.
“But as the Norges Bank clearly doesn’t see an overwhelming need right now to loosen policy, even in the case of a rate cut we look for a relatively hawkish message, and think that we would need to see fresh downside developments for the Norges Bank to seriously consider cutting again”.
Key Quotes
“The Norges Bank still seems to be very reluctant to ease further given the concerns about high household debt, and the strength of the oil investment survey gives it the cover it needs to resist any further easing”.
“If the Norges Bank had felt any kind of urgency to ease, it would have met market expectations and cut rates at its May meeting”.
“But as the Norges Bank clearly doesn’t see an overwhelming need right now to loosen policy, even in the case of a rate cut we look for a relatively hawkish message, and think that we would need to see fresh downside developments for the Norges Bank to seriously consider cutting again”.