Norges bank: Finally, the spring thaw arrives - TDS

James Rossiter, Senior Global Strategist at TDS, suggests that after holding rates unchanged at its December meeting (but promising more easing), we and markets expect the Norges Bank to deliver on its forecast by cutting the key policy rate by 25bps next week.

Key Quotes

“We expect the Norges Bank to follow this up with another 25bps cut in 16Q2. Beyond this, fiscal policy will need to play a more active role in supporting the economy.”