20 Mar 2015
Norges bank might cut rates in its May meeting – Nomura
FXStreet (Barcelona) - The Research Team at Nomura, expects Norges Bank to remain dovish and cut the repo rate by 25bps in May.
Key Quotes
“Norges Bank in a surprise to the market left its repo rate unchanged at 1.25%, while we and the market expected a 25bp cut. Even though Norges Bank left its policy unchanged, its stance was more dovish than previously.”
“We expect Norges Bank to remain dovish, and the Bank to likely cut its repo rate by 25bp relatively soon. We think the most likely time is the next meeting on 7 May, unless there is a clearer recovery in oil prices by then.”
“There is now a clear contrast between Norges Bank and the Riksbank’s policy stance, so NOK/SEK could trade strongly for the time being.”
“At the same time, Norges Bank’s dovish stance and the higher chance of a rate cut suggest limited downside below 8.50 for EUR/NOK, in our view.”
Key Quotes
“Norges Bank in a surprise to the market left its repo rate unchanged at 1.25%, while we and the market expected a 25bp cut. Even though Norges Bank left its policy unchanged, its stance was more dovish than previously.”
“We expect Norges Bank to remain dovish, and the Bank to likely cut its repo rate by 25bp relatively soon. We think the most likely time is the next meeting on 7 May, unless there is a clearer recovery in oil prices by then.”
“There is now a clear contrast between Norges Bank and the Riksbank’s policy stance, so NOK/SEK could trade strongly for the time being.”
“At the same time, Norges Bank’s dovish stance and the higher chance of a rate cut suggest limited downside below 8.50 for EUR/NOK, in our view.”