Norway central bank rates seen on hold after recent hikes: Reuters poll

0
15

By Terje Solsvik

OSLO (Reuters) – Norway’s central bank is expected to keep its key policy interest rate on hold next week and is unlikely to hike again in the foreseeable future, a Reuters poll of economists found on Wednesday.

Norges Bank has raised rates four times in the last 13 months amid the fastest economic expansion since 2012, defying a global thanks to strong growth in the country’s and industry.

Article continues below Advertisement...

The central bank said in September however that the chance of further policy tightening had diminished amid a slowdown that has led a large number of central banks around the world to cut rates.

All 35 economists polled by Reuters expect the central bank to maintain its deposit rate at 1.5% when it announces its decision on Oct. 24. Only eight – less than one in four – predict that a hike would follow in the next several years.

“Developments since September have been more or less in line with the central bank’s expectations, so there won’t be any signals of policy changes to come,” DNB Markets economist Kyrre Aamdal said of the upcoming meeting.

The policy-setting board will be monitoring the effects of an ongoing weakening of the Norwegian crown currency however, to see if it has any longer-term impact on inflation, Aamdal added.

The crown is trading at 18-year lows against the dollar and near an all-time low against the euro as flock to safe-haven currencies at a time of global uncertainty.

Only one economist was predicting that Norges Bank may start easing policy, penciling in a cut for the second quarter of 2020.

(Polling by Sarmista Sen in Bengaluru; Editing by Chizu Nomiyama)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, ) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the , it is one of the riskiest investment forms possible.

Source: Investing.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here