Norwegian Krone Gains as Norges Bank Hints at Interest Rate Hike

The Norwegian krone rallied today after the nation’s central bank kept its monetary policy without change but hinted at a possibility of an interest rate hike in the near future.

The Norges Bank maintained its key interest rate at 0.5%, making no surprise. Unlike the Swiss franc, though, Norway’s currency reacted positively to the monetary policy announcement. The likely reason for that was the fact that the Norwegian central bank hinted at possibility of higher rates in the future:

The outlook for the Norwegian economy suggests that it will soon be appropriate to raise the key policy rate.

USD/NOK dropped from 7.7277 to 7.6624 intraday before rebounding to 7.7083 by 13:45 GMT today. EUR/NOK declined from 9.5580 to 9.5017, touching the low of 9.4735 intraday — the lowest level since November 13.

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