Halister News

(Bloomberg) -- Norges Bank will keep rates on hold this week but keep an easing bias, signaling a cut in coming months has a significant probability, Nordea senior economist Erik Bruce writes in a research note.

• Nordea sees the rate path bottoming out at 0.40%, indicating a less than 50% probability of a rate cut, which should be fairly neutral to interest rates; NOK should strengthen
• Norges Bank signaling that it’s gradually moving to a neutral stance due to a stronger economy could be a trigger for an increased focus on the domestic economy and less on short term movements in oil prices
• If Norges Bank cuts rates, would expect it to signal that this is the last cut; still interest rates should drop and NOK would weaken significantly