Norwegian Krone Benefits from Anticipation of Higher Rates

The Norwegian krone gained today on the forecast that the nation’s central bank will raise its interest rates today to slow the fast credit growth.
Most analysts think that Norges Bank will raise its key rate to 2.25 percent from 2.0 percent. The decision will be made at 14:00 today. Norway has the lowest jobless rate in Europe and that resulted in the biggest credit growth in 20 months. The inflation stays below the central bank’s target of 2.5 percent, but grew to 1.3 percent in April, while the bank’s forecast was 0.9 percent.
USD/NOK traded at 5.5074 today as of 9:28 GMT after it dropped from 5.5130 to 5.4761.

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