FXStreet (Edinburgh) – The Nordic central bank could remain on hold at next week’s meeting, although a rate cut is expected in December, suggested strategists at TD Securities.
Key Quotes
“We expect one more rate cut by the Norges Bank this year, but not at this meeting, as they’ll want to hold fire until the ECB and Riksbank have had their December meetings”.
“Economic stimulus has been boosted broadly in recent weeks, and we see no need to rush to more—yet”.
“The Norges Bank effectively adopted forward guidance at its September policy meeting, and fiscal policy was recently eased to complement September’s rate cut, with the government dipping slightly into its reserve fund to help support growth as the economy transitions to a lower oil price regime”.
“So there’s time for the economy to absorb these measures before the Norges Bank eases more”.
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