EUR/NOK: Any correction to 10.00 will meet good selling interest – ING

The Norges Bank meets today. Markets expect a 50 basis points (bps) hike. But in the event of a 25 bps hike, the EUR/NOK is unlikely to break the 10 barrier, economists at ING report.

A 25 bps move could still be on the table

“Consensus has shifted towards a 50 bps hike – taking the policy rate to 1.75%. Though we think a 25 bps move could still be on the table.” 

“A 25 bps would disappoint markets now, though we expect any correction in EUR/NOK to 10.00 will meet good selling interest.”

See – Norges Bank Preview: Forecasts from six major banks, high inflation forces to hike 50 bps