Norway leaves rate on hold – NOK descreases
Norges bank left the interest rates on hold at 1,75 % – just as expected. Their outlook for Norways economy was more negative then earlier expressed. As a result, the norwegian krona have declined against the major trading partners and currencies.
Why did Norway keep interest rates at 1.75 %
One of the main reasons for keeping the rate at current levels was scaled back inflation expectations, while a slower recovery in Europe was another. Recent Norwegian growth and unemployment rates have also been slightly lower then expected.
Forecast for Norwegian krona?
The krona dropped to year low against USD a few day ago, while carving out a nice top against the Euro. Recent sell off in brent and cruide oil have not helped the norwegian krona. We expect the krona to test the 6.1 levels against the USD in the coming week and possibly make new lows.
