The Norwegian krone jumped after Norway’s central bank refrained from an interest rate cut at today’s policy meeting. What is more, bank’s chief Oeystein Olsen hinted at a possibility of an interest rate hike after 2015.
The Norges Bank kept its key interest rate at 1.5 percent today. The statement dropped the mention of a possibility of a rate cut. In fact, Governor Olsen mentioned a likelihood of higher interest rates later in the future:
The analyses in the Monetary Policy Report presented today imply that the key policy rate will remain at the present level to the end of 2015, rising gradually thereafter.
USD/NOK dropped from 6.4463 to 6.3280 as of 17:47 GMT today.
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