The Norwegian krone rose today after the Norges Bank kept monetary policy unchanged and the decent growth of Norway’s economy reduced the risk of interest rate cuts.
The central bank decided to keep its key policy rate at 0.5%. The bank said in the statement:
The rise in oil prices may reduce uncertainty and contribute to somewhat higher growth in the Norwegian economy.
Indeed, Norway’s gross domestic product expanded 1% in the first quarter of 2016, recovering from the 1.3% decline during the previous three months and exceeding the forecasts that had promised just a meager increase by 0.1%.
USD/NOK fell from 8.1653 to 8.1451 as of 16:02 GMT today.
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