Norges bank cuts rate by 25bps – TDS
FXStreet (Delhi) – Research Team at TDS, notes that as per their forecast, the Norges Bank has cut their key policy rate today by 25bps to 0.75%. Market consensus was for no cut.
Key Quotes
“The accompanying release signalled that rates will need to remain lower for longer, and that further cuts may be necessary, with a 65% chance of another cut shown in 2016.”
“In fact, we’d view this as a subtle launch of forward guidance, with rates projected to be over 50bps lower than their June forecast by 2017, with no thought of hiking until end-2018.”
“Norges Bank was sanguine on recent inflation pressures, seeing them as a transitory cost that is necessary in order to smooth the economy’s adjustment to lower oil prices.”
Research Team at TDS, notes that as per their forecast, the Norges Bank has cut their key policy rate today by 25bps to 0.75%. Market consensus was for no cut.
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