Norges Bank Preview: Expected unchanged, favour tactical EUR/NOK shorts – RBS

Research Team at RBS, expects Norges Bank to leave the key policy rate unchanged at 0.50% at Thursday’s policy meeting, in line with the majority consensus.

Key Quotes

“While the projected rate path presented in June suggested a likely 25bp rate cut in September, economic developments have been better than expected, inflation has been stronger than forecast and house price gains have accelerated. We therefore no longer see a sufficient case for further policy easing at this week’s meeting. EUR/NOK has lagged moves in rate spreads in recent weeks; we favour tactical shorts into Thursday.”