Norges Bank Plans No Interest Rate Cuts, Krone Jumps

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.

If you have any questions, comments or opinions regarding the Norwegian Krone,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *