However, economists at commerzbank expect the nok to recover over the coming months on the back of hawkish norges bank’s statements. norway march inflation came in stronger than expected. Download presentation. slide: policy rate raised to 4.5 percent. norges bank is tasked with keeping inflation low and stable. the operational target is inflation of close to 2 percent over time. we are also mandated to help keep employment as high as possible and to promote economic stability.
Norges bank will hold a press conference following the monetary policy decision in january. rate effective from 15 december 2023: policy rate: 4.5 %. overnight lending rate: 5.5 %. reserve rate: 3.5 %. contact: press telephone: 47 21 49 09 30. email: presse@norges bank.no. published 14 december 2023 10:00. More surprising, many would say, is the level of the krone exchange rate. about a year ago, it cost 10.32 kroner to buy one euro. at the beginning of this week it cost 11.88 kroner. measured against an import weighted average of our main trading partners’ currencies, i 44, the krone has depreciated by over 9 percent. For the second consecutive month, norges bank announced lower than expected daily fx purchases (nok1.9bn) for the month ahead. this may at least partly denote appetite for a stronger domestic currency, which would help fight inflation as norges bank’s room for tightening may be restrained by norway’s economic woes and vulnerable property. The central bank needs a stronger nok to bring the price pressure under control. this is crystal clear after today’s rate meeting. it is highly unlikely that norges bank will cut rates without a stronger nok. the central bank has even a 20% probability for another hike in q1 2024, that could come if the nok continues to weaken.
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